- XRP price is forming a bull flag pattern on the 4-hour chart, indicating that a breakout is underway.
- If Ripple manages to break out of the resistance at $0.56, then a 35% upswing seems likely.
- Rejection from this critical supply barrier would result in a pullback to the 100 four-hour moving average at $0.49.
XRP price is trading at $0.55at the time of writing, hoping for a spike in buying pressure that could see it head to greener pastures.
XRP price prepares for lift-off
XRP price is currently traversing inside a bull flag. The 55% surge seen between February 10 and 13 formed the “flagpole,” while the consolidation since then developed the “flag.”
This continuation pattern predicts a 35% upswing upon breaking the flag’s upper trendline at $0.56. Hence, a decisive 4-hour candlestick close above this price hurdle is necessary for XRP price to achieve its upside potential.
In the event of a breakout, XRP price will target $0.72.
XRP/USDT 4-hour chart
While this does look bullish, a failure to breach the $0.56 supply barrier could result in a 10% downswing. If this were to happen, XRP price would drop to the 100 four-hour moving average at $0.49 to look for support.
The short-term bearish outlook is further validated by a 40% decline in Ripple’s development activity index since February 15. Market participants might interpret such a steep decline as a sign of no effort by the developers’ team behind this project to polish and improve XRP’s network.
