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The analyst explained how XRP could eventually reach the $4 level if its 4-hour price breaks out of the recent bull flag pattern.
XRP Has Been Consolidating Inside The Bull Flag Recently
In a new post on X, analyst Ali Martinez talked about how the 4-hour price of XRP has formed a Bull Flag recently. “Bull Flag” here refers to a pattern in technical analysis (TA) that, as its name suggests, looks like a flag on a pole.
A pattern forms whenever the price of an asset follows a sharp rise and a period of consolidation to the bottom. The initial upstroke corresponds to the ‘pole,’ while the compound time forms the ‘flag.’
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In flag patterns, this integration occurs directly within the same channel. That is, between two parallel lines that mark the respective tops and bottoms in the value. When trend lines intersect, the pattern is known as a pennant.
The high level of the flag may provide price resistance, while the low level may act as support. A break of one of these trend lines would indicate a continuation of the trend in that area.
A bull flag is considered a continuation pattern, so the probability of a breakout above the resistance level may be higher than that of a support line failure.
Like the bull flag, there is also a pattern called the bear flag. This one works in much the same way, except for the fact that the pole is made of a sharp drop and the flag represents a short phase of upward integration.
Now, here is a chart shared by an analyst that shows the bull flag that XRP has recently moved in:
As shown in the graph above, the 4-hour XRP price has recently seen a rise to the high level of the bullish flag consolidation channel. When the same test took place a few days ago, the material was rejected, but this may be the time when it gets a break.
Martinez revealed, however, that the cryptocurrency saw another signal alongside this reevaluation: the completion of the Tom Demark (TD) Sequential sell setup.
TD Sequential is a TA indicator that basically identifies potential highs and lows in any asset. It involves two phases, with the first, known as the setup, occurring after the price has seen nine candles of the same color.
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XRP ended this type of TD Sequential phase with nine green candles, which means that the indicator is now showing a potential reversal for the coin.
Thus, the analyst thinks that a short correction will occur in the cryptocurrency first, before it can find a break above the $0.246 resistance. The breakout of the bull flag may be the same length as the pole, so based on this, Martinez chose the $4 target for XRP.
XRP price
At the time of writing, XRP is floating around $2.42, up more than 4% in the past seven days.
Featured image from Dall-E, charts from TradingView.com
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