XRP poised for massive $4.40 breakout after THIS – What’s going on?

XRP consolidates after three bullish pennants; $4.40 breakout possible if $2.25 support holds.
Rising options interest and trading activity confirmed strong momentum.

As a seasoned analyst with over two decades of market observation under my belt, I find myself intrigued by XRP’s current price action. After three consecutive bullish pennants and the $2.25 support holding strong, I believe we might be on the cusp of a breakout that could propel XRP towards the elusive $4.40 target.

At the moment, XRP’s price movement has displayed three successive bull flag patterns, which is often interpreted as a strong indication of an upcoming bullish trend continuation.

As a crypto investor, I noticed an initial trend unfolding when XRP surged from $0.80 to $1.20. After a brief pause in growth, it showed signs of consolidation before making a strong upward breakout.

After a price shift from $1.20 to $1.80, the second flag-like pattern demonstrated similar consolidation and breakout patterns as before.

After the spike from $1.80 to $2.50, the latest flag or pattern in the graph of XRP’s price is taking shape. The value has been holding steady within a range of around $2.25 to $2.60.

Experts propose that this structure could trigger a further uptrend, possibly pushing XRP up towards the predicted price of $4.40, should it overcome the existing hurdle in its path.

Identifying the $2.25 mark as a significant point of potential resistance, it could present an opportunity for investors looking to buy, if they expect the market to keep rising.

Technical indicators support a bullish outlook

At the moment, XRP was found hovering above the average line of its 20-day Bollinger Bands, suggesting that it is experiencing a continuous upward trend or bullish pressure.

Even though the current candle indicates a dip towards the upper limit, the middle line around $1.93 might provide extra support should the price continue to retreat.

Indicators suggesting a bullish trend are signaling a positive market condition. Specifically, the Relative Strength Index (RSI), currently at 67.33, shows a strong upward movement that is approaching overbought territory, hinting at powerful momentum.

This temporary drop in temperature corresponds well with the recent decline in XRP’s price, implying that XRP might stabilize for a while before resuming its upward trend.

The MACD (Moving Average Convergence Divergence) supports this perspective, as the MACD line consistently resides above its signal line. While the histogram bars exhibit a slight shrinkage, the predominant upward trend continues to hold strong.

Derivatives data shows mixed sentiment

Data on derivatives indicates a surge in market action. The trading volume for XRP has spiked by 13.86% to reach a staggering $16.44 billion, while the volume of options has also seen a significant jump by 17.41%, suggesting a heightened level of speculative enthusiasm.

Options Open Interest also increased by 16.20%, indicating growing confidence among traders.

The decrease of 3.89% in ongoing contract open interests indicates that some traders may have been wrapping up their trades.

Currently, the Long/Short Ratio is indicating a bullish tilt. Specifically, Binance has a ratio of approximately 3.76, while OKX stands slightly lower at 2.31.

Read XRP’s Price Prediction 2024–2025

Over the last day, large-scale sell-offs amounting to approximately $21.31 million were recorded, suggesting heightened market turbulence. This significant liquidation impacted long positions to the tune of around $13.37 million, while short positions experienced a comparatively lower impact of about $7.94 million.

Given its robust upward trend, solid underlying supports, and continuous trader involvement, XRP appears primed for a probable short-term surge, potentially breaking through to new heights.

2024-12-10 07:38

Technical indicators support a bullish outlook

Derivatives data shows mixed sentiment

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