- XRP consolidates after three bullish pennants; $4.40 breakout possible if $2.25 support holds.
- Rising options interest and trading activity confirmed strong momentum.
XRP’s price action showcased three consecutive bull pennant formations at press time, a classic bullish continuation pattern.
The first pattern emerged after a rally from $0.80 to $1.20, where XRP consolidated briefly before breaking out to the upside.
The second pennant followed a price movement from $1.20 to $1.80, repeating the same consolidation and breakout behavior.
The third and current pennant formed after XRP surged from $1.80 to $2.50. The price has been consolidating between $2.25 and $2.60.
Source: X
Analysts suggested that this formation may lead to another bullish breakout, potentially driving XRP toward the $4.40 target if the current resistance is surpassed.
The $2.25 level has been identified as key support, offering a potential entry point for buyers anticipating further upward momentum.
Technical indicators support a bullish outlook
XRP remained above the 20-day Bollinger Bands’ moving average at press time, indicating sustained bullish momentum.
Despite the current candle showing a pullback from the upper band, the midline near $1.93 could serve as additional support if the price experiences further retracement.
Momentum indicators also point toward bullish conditions. The Relative Strength Index (RSI) was 67.33, reflecting strong upward momentum while nearing overbought territory.
Source: TradingView
This cooling off aligns with the recent price pullback and suggests that XRP may consolidate before continuing its ascent.
The MACD indicator further reinforces this outlook, with the MACD line staying above the signal line. Although the histogram bars are contracting slightly, the overall bullish trend remains intact.
Derivatives data shows mixed sentiment
Derivatives data reveals increased market activity. XRP’s trading volume has grown by 13.86%, reaching $16.44 billion, while options volume rose by 17.41%, showing heightened speculative interest.
Options Open Interest also increased by 16.20%, indicating growing confidence among traders.
Open Interest in perpetual contracts, however, dropped by 3.89%, suggesting that some traders were closing positions.
Source: Coinglass
Meanwhile, the Long/Short Ratio revealed a bullish bias, with Binance showing a ratio of 3.76 and OKX at 2.31.
Read XRP’s Price Prediction 2024–2025
Large-scale liquidations, over the past 24 hours, totaled $21.31 million, indicating elevated volatility, with $13.37 million in long positions affected compared to $7.94 million in shorts.
With a strong uptrend, key support levels intact, and consistent trading activity, XRP remains poised for a potential breakout in the near term.
