XRP appears poised for a significant rally after months of consolidation, with key technical indicators pointing to a shift towards bullish momentum.
In particular, in a publication DarkDefender He highlighted that XRP has confirmed a breakout on the four-hour chart, indicating a clear change in market sentiment.
At press time, XRP is trading at $2.40, marking a strong recovery from its prolonged consolidation range of $0.50 to $0.60.
The digital asset has recorded a 0.14% gain on the weekly chart and is up an impressive 326% year-to-date. This breakout comes on the heels of XRP hitting a local high of $2.71 on December 3, further fueling optimism about continued bullish momentum.
Technical indicators confirm bullish momentum
According to the analysis, XRP’s break above a descending trend line in the four-hour period indicates a possible reversal of its previous downtrend. However, a daily close above $2.52 is required to solidify this bullish outlook.
The Ichimoku cloud projects a bullish trend, and XRP is now trading above the cloud, a signal traditionally associated with further upside potential. Furthermore, the Relative Strength Index (RSI) has formed a Golden Cross, confirming increasing buying pressure and a definite shift in momentum.
Key levels to consider
The immediate focus now lies on XRP’s ability to break through the critical resistance at $2.52. A confirmed daily close above this level could open the door to a retest of the December 3 high at $2.71.
Beyond that, DarkDefender has outlined short-term price targets of $5.85 and $8.76, supported by bullish market conditions and historical price movements.
On the downside, XRP must defend key support levels to maintain its bullish outlook. Analysts point to $2.29, $2.24, $2.10 and $2.02 as critical zones where buyers are expected to step in to maintain the bullish momentum.
Derivatives market data and broader ecosystem developments
Data derived from glass coin further reinforces the bullish outlook for XRP. Options open interest has increased by 16.20% to $992.33K, reflecting growing confidence among traders in XRP’s upward trajectory.
Meanwhile, options volume has increased by 17.41%, suggesting increased activity as traders position themselves for volatility.
Binance’s long/short ratio among major traders stands at 3.845, indicating a clear bullish bias. Despite a slight 12.62% drop in overall derivatives volume, open interest remains stable, indicating sustained market commitment and confidence in XRP’s potential for further gains.
Additionally, investors are quite bullish on XRP and the broader Ripple Labs ecosystem, especially since its stablecoin, RLUSD, recently received final approval from the New York Department of Financial Services (NYDFS).
This milestone enhances trust in the Ripple ecosystem and strengthens XRP’s position within the broader digital asset market.
Bullish Flag Pattern Points to $4 Target
While long-term projections for XRP remain ambitious, with some analysts predicting prices as high as $48, short-term forecasts point to immediate upside potential.
In particular, cryptocurrency analyst Ali MartinezIn a December 12 X post, he identified a bullish flag pattern on the XRP chart, suggesting that XRP could rise to $4 in the near term.
$XRP appears to be forming a bullish flag! Still, TD Sequential recently presented a sell signal on the 4-hour chart, leading me to believe that #XRP may see a brief correction before a break above $2.46 that could send the price to $4. pic.twitter.com/L8zwMYT1Rb
– Ali (@ali_charts) December 12, 2024
Martinez He highlighted $2.46 as a key breakout level to confirm the pattern and noted that any short-term pullback could present a buying opportunity for traders looking to capitalize on the next upward move.
That said, XRP’s recent breakout, coupled with strong technical indicators and improving market sentiment, presents a bullish outlook for the digital asset.
A decisive close above $2.52 could usher in XRP’s next big rally, with analysts projecting targets of $4 in the near term and $8.76 in later moves.
At $4, the market capitalization of million dollars.
However, at $8.76, market greater than 2 billion dollars.
Backed by growing interest in derivatives and Ripple’s expanding ecosystem, XRP remains a key asset to watch as it positions itself for further gains in the current market recovery.
Featured image via Shutterstock
