Notably, market participants are watching the asset, considering it has mainly been in a consolidated phase amid the ongoing market rally.
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FieryTrading noted that XRP has been trading within a consolidating pattern characterized by higher lows and lower highs, ultimately forming a triangle pattern. The analyst classified this pattern as a bull flag, given its emergence directly after the remarkable 7,000x surge in 2017.
In this regard, a bull flag is a continuation chart pattern characterized by two parallel trendlines that move in the opposite direction of the dominant trend observed on a longer time frame chart. In this case, the bull flag emerged directly after a significant surge in XRP’s price in 2017.
According to the analysis, this extensive pattern is anticipated to experience a breakout next year, with the most likely outcome being a bullish move, especially considering the halving event on the horizon.
“This huge pattern will explode at some point in 2024, with the most likely move being a bullish one with the halving in mind,” he said.
The potential of XRP hitting $25
The cryptocurrency analyst expressed confidence in the potential of XRP’s breakout, drawing parallels with the performance of other cryptocurrencies in previous cycles. He highlighted the example of Cardano (ADA), another altcoin that made a top 6x higher than its last cycle.
Drawing inspiration from such occurrences, the analyst set an ambitious target for XRP’s breakout at $25. The expert acknowledged that the $25 target might seem lofty but emphasized its rationale, comparing it to historical trends in the crypto market.
“ It might be too high, but ADA also made a top 6x higher than the previous one last cycle, so why not? With a relatively tight stop and a far target, we’re able to create a signal with a risk-reward of almost 80, a potential game changer for anyone’s portfolio,” he added.
At the same, the potential breakout of XRP is also echoed by Egrag Crypto, an analyst who, in a prior post on X (formerly Twitter), highlighted that XRP exhibits the potential for a significant rally of 2,500%, referencing past price movements.
XRP price movement concerns
It is worth noting that after XRP received regulatory clarity, being declared not a security, there was optimism that the asset would rally. However, the token has mainly traded in a consolidated phase, with some participants terming the movement strange.
Despite following the general market trajectory, there is a general consensus that the token faces an imminent breakout.
Notably, the legal matter with the SEC will likely play a role in influencing the value of XRP. Currently, the Ripple case continues to proceed through the damages phase and potential appeals.
XRP price analysis
By press time, XRP had recorded daily gains of over 2%, trading at $0.63. On the weekly chart, XRP is up over 5%.
Considering all factors, the $1 mark remains XRP’s top target, as the community believes it will usher in the next record high.
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