XRP price slowly forms a bullish pattern: can Ripple hit $5

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As a seasoned researcher with years of experience in the cryptocurrency market, I must say that the current formation of a bullish flag pattern in Ripple (XRP) is quite intriguing. With my finger on the pulse of the crypto world, I’ve seen many such patterns come and go, but this one seems particularly promising, given the confluence of other positive factors.

Over time, the structure of XRP’s pricing appears increasingly optimistic, suggesting a powerful surge may be imminent within the short run.

On December 13th, the price of Ripple (XRP) stood at $2.40, marking a 28% increase over its weekly low. This value is slightly lower than its highest point this year, which was $2.90.

XRP price is forming a bullish flag

The daily graph indicates that Ripple could be shaping a remarkably optimistic trend, potentially leading to a robust recovery within the upcoming days.

The graph is showing a bullish flag pattern, which consists of a tall vertical stretch followed by a rectangular structure. This pattern began shaping up in late October and was completed in November. Since December 2nd, it has been developing the flag portion.

Generally speaking, assets often bounce back significantly once a flag pattern ends. For XRP specifically, the breakout from its descending channel will signal the completion of this pattern.

On December 10th, XRP exhibited a hammer-like formation, with its bottom at approximately $1.9690, which coincided with the 38.2% Fibonacci Retracement level. A hammer consists of a long lower wick and a small body, and it’s often seen as a bullish reversal signal.

Additionally, it appears that Ripple might be experiencing a corrective phase within an Elliott Wave pattern, following an impulse wave. Notably, it continues to hover above both its 50-day and 100-day Exponential Moving Averages.

Consequently, it seems like the XRP price still has potential for growth. Once it surpasses the top boundary of the flag at approximately $2.90, this will strengthen the bullish outlook. Subsequently, key levels to keep an eye on would be the psychological resistance at $3 and then $5.

Potential catalysts for Ripple

Ahead for Ripple, several potential triggers emerge. Notably, there’s evidence suggesting large XRP holders, often referred to as ‘whales’, are amassing the token. As reported by CryptoQuant, this whale activity has spiked to a record high, indicating that prominent investors have taken a liking to it.

Following this, Ripple Labs has been given the green light by New York’s regulatory bodies to introduce the RLUSD stablecoin. The creators have suggested that the launch could happen imminently. Although it is premature to predict its success, the forthcoming launch is expected to generate excitement among investors.

Thirdly, it’s possible that the XRP Ledger could gain popularity among developers due to its current asset value of approximately $63.5 million, which is expected to increase further.

Additionally, and crucially, it seems probable that Ripple will soon introduce an Exchange Traded Fund (ETF) given Donald Trump’s expressed support for cryptocurrencies. This development, along with other factors, may potentially drive up the value of XRP in the immediate future.

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2024-12-13 19:13