- 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.
XRP Development Activity
Depending on the buyers’ or sellers’ concentration at the 100 four-hour MA, Ripple might take another jab at the $0.56 resistance or slide to the 200 four-hour MA at $0.40.