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In a chart shared by crypto analyst Ali Martinez, XRP has broken out of a descending channel commonly identified as a bull flag, indicating a possible continuation of the recent uptrend. This move paves the way for a rise towards $4.40 based on the Fibonacci extension levels.
XRP price looks $4.40
According to the two-hour Binance chart as long asInitially, XRP rose from around $2.3374 on January 13 to a local high of $3.3509 on January 17, marking a rapid rise that established the so-called flagpole. After reaching this local high at $3.3509, the price shifted into a consolidation phase, moving within a downsloping channel from January 17 through January 19 and briefly falling below the Fibonacci retracement level of 0.786 at $3.1021 before recovered.
The breakout above the channel’s upper boundary, which occurred around $3.20 on January 20, is seen as a classic confirmation of a bull flag. A bull flag pattern consists of two major segments: the rapid, nearly vertical ascent (flagpole) and the subsequent, more gradual consolidation (flag). When an asset’s price closes decisively above the flag’s upper trendline, traders generally interpret this as a signal that the previous uptrend is likely to resume.
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In this particular setup, the distance from the flagpole is measured from the swing low at $2.3374 to the swing high at $3.3509, giving a profit of about $1.01. Analysts then add that distance to the breakout level near $3.20 to approach a price target in the $4.20 region.
However, Martinez’s chart also includes Fibonacci extensions that provide more detailed potential targets, anchored at 0% ($2.3374) and 1 ($3.3509). These extensions appear at 1.272 ($3.6958), 1.414 ($3.8889), 1.618 ($4.1863), and 1.786 ($4.4475). The analyst mentions $4.40 as the primary bullish target, which is closely aligned with the 1.786 extension level.
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According to Martinez’s chart, XRP was trading around $3.29 and hovering just below the local high at $3.3509. If the cryptocurrency can stay above the breakout zone and eventually surpass USD 3.3509, the chart’s technical data suggests a potential climb to successive extension levels in the high USD 3 range and eventually towards USD 4.40.
The importance of the $4.40 target lies in the convergence of the Fibonacci analysis with the classic expected bull flag move, giving traders a clear upside marker to watch for continued momentum. While short-term fluctuations are always possible in volatile crypto markets, the breakout from the flag consolidation has provided a notable bullish signal depending on XRP’s ability to hold support around $3.20 and build enough volume to cross the threshold of $3.3509.
Notably, XRP was unable to defend the breakout. At the time of writing, XRP fell back into the channel and traded at $3.06. So, XRP bulls need to step up once again to revalidate the scenario.
Featured image created with DALL.E, chart from TradingView.com