In a chart shared by crypto analyst Ali Martinez, XRP has broken out of a descending channel commonly known as a “bull flag,” indicating that the trend may continue up recently. The move sets the stage for a push towards $4.40, based on Fibonacci expansion levels.
XRP Eyes Price $4.40
According to the Binance chart two hours givenXRP initially rallied from around $2.3374 on January 13 to a local high of $3.3509 by January 17, marking a rapid rise established by the so-called flag pole. After reaching this local high at $3.3509, the price moved into a consolidation phase, moving within a downward sloping channel from January 17 to January 19 and briefly dipping below the level 0.786 Fibonacci retracement at $3.1021 before reversing.
The break above the upper limit of the channel, which ended around $3.20 on January 20, is seen as a classic confirmation of a bullish flag. There are two main parts to a bull flag pattern: the fast, almost vertical climb (pole-flag) and the more gradual consolidation (flag). When an asset's price closes decisively above the upper trend line of the flag, traders is generally interpreted as a sign that the upswing is likely to begin earlier.
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In this particular scenario, the flagpole distance is measured from the swing low at $2.3374 to the swing high at $3.3509, which gives a gain of about $1.01. Analysts then add that distance to the breakout level near $3.20 to estimate a price target in the $4.20 region.
The Martinez chart, however, also includes Fibonacci extensions that provide more granular targets possible, 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 cites $4.40 as the primary bullish objectivealigns closely with the 1.786 expansion level.
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According to Martinez's chart, XRP was trading near $3.29, going slightly below the local level of $3.3509. If the digital currency can hold above the breakout zone and eventually cross $3.3509, the chart's technical suggests a possible climb towards sustained expansion levels in the upper $3 range and at eventually to $4.40.
The importance of the $4.40 target lies in its combination of the Fibonacci analysis with the classic bullish flag projection trend, giving traders an upside signal to look for a continuation trend. Although short-term fluctuations are always possible in volatile crypto markets, the break out since the confirmation of the flag has offered a very bullish signal, according to the ability of XRP to maintain support around $ 3.20 and raise enough volume to break the $ 3.3509 threshold.
In particular, XRP could not protect the breach. At press time, XRP fell back into the channel and traded at $3.06. Therefore, XRP bulls have to do it one more time to reconfirm their position.
Featured image created by DALL.E, a chart from TradingView.com
