XRP Price Forms Bull Flag on 4-Hour Chart With Potential Breakout Above $2.46

·

The XRP price has entered a critical phase on the 4-hour chart, forming a classic bull flag pattern that could signal the beginning of a powerful upward move. Despite a recent 4.5% pullback in the past 24 hours, market structure suggests the broader bullish trend remains intact. Crypto analyst Ali Martinez recently spotlighted this development, reigniting interest among traders and long-term investors alike.

This consolidation pattern has been developing since the start of the month, following a sharp correction from XRP’s six-year high of $2.90 reached on December 3. The price action since then has reflected typical market behavior after a strong rally—profit-taking, consolidation, and the formation of lower highs and lower lows. However, within this corrective phase lies a potentially explosive setup: the bull flag.

Understanding the Bull Flag Pattern in XRP’s Price Action

A bull flag is a technical continuation pattern that typically forms after a strong upward move, followed by a brief period of consolidation in a downward-sloping channel. The “flag” represents temporary hesitation among traders, often due to profit-taking or uncertainty, but historically precedes a resumption of the prior uptrend.

In XRP’s case, the flag began to take shape after the December surge, which saw the price jump 54% in just three days. The subsequent correction brought XRP down to test key support near $2.00—coinciding with the 0.5 Fibonacci retracement level of the rally from $1.10 to $2.90. This level has historically acted as strong support, reinforcing confidence in the ongoing bullish structure.

👉 Discover how technical patterns like the bull flag can unlock profitable trading opportunities.

The breakout trigger for this pattern lies above **$2.46**, which currently acts as resistance. A decisive close above this level could confirm the resumption of the uptrend and open the door for further gains toward $3.20 and potentially even $4.00—aligned with the 1.414 Fibonacci extension level of the initial rally.

Conflicting Signal: TD Sequential Suggests Short-Term Pullback

While the bull flag paints an optimistic picture, traders should remain cautious due to a conflicting signal from the TD Sequential indicator. This widely respected technical tool, known for identifying turning points in market cycles, recently flashed a sell signal on XRP’s 4-hour chart.

According to Ali Martinez, this suggests that before any major breakout occurs, XRP may undergo a brief but meaningful correction. Such corrections are common in healthy markets and often serve to shake out weak hands before the next leg up.

Potential downside targets during this phase include:

These levels align with historical support zones and could serve as strong rebound points if tested. As long as XRP holds above $1.90, the overall bullish thesis remains valid.

At the time of writing, XRP is trading at $2.34, indicating that the early stages of this predicted correction are already unfolding. This presents a strategic opportunity for traders to monitor price behavior near support and prepare for re-entry ahead of a potential breakout.

Key Support Levels to Watch for XRP

Support levels play a crucial role in determining whether a correction evolves into a deeper reversal or simply a healthy consolidation. For XRP, several key zones are worth watching:

As long as these levels hold, especially $1.93, the path remains clear for a bullish continuation once selling pressure subsides.

👉 Learn how to identify high-probability support and resistance zones in volatile markets.

What’s Next for XRP? Breakout or Further Consolidation?

The current market structure suggests two possible scenarios:

  1. Bullish Breakout: If XRP sustains a close above $2.46 with strong volume, it could trigger a wave of buying momentum, pushing prices toward $3.20 and beyond.
  2. Deeper Correction: If bearish momentum strengthens and breaks below $1.93, it may indicate a more extended consolidation phase, potentially invalidating the bull flag pattern.

However, given the strength of the initial rally and strong accumulation observed around key Fibonacci levels, most analysts believe the former scenario is more likely.

Core Keywords Driving Market Interest

To align with search intent and enhance SEO performance, here are the core keywords naturally integrated throughout this analysis:

These terms reflect what active traders and investors are searching for when evaluating XRP’s short- to medium-term potential.

Frequently Asked Questions (FAQ)

What is a bull flag pattern?

A bull flag is a bullish continuation pattern characterized by a sharp price increase (the flagpole), followed by a parallel downward consolidation (the flag). It typically resolves with a breakout in the direction of the prior trend.

What does the TD Sequential indicator suggest for XRP?

The TD Sequential recently issued a sell signal on the 4-hour chart, indicating that XRP may experience a short-term correction before any significant upward move.

At what price could XRP break out?

A confirmed breakout would occur if XRP closes above $2.46 with strong volume, signaling renewed bullish momentum.

What are the next major price targets if XRP breaks out?

If the bull flag completes successfully, XRP could target $3.20** in the short term and potentially extend toward **$4.00, based on Fibonacci extension levels.

How reliable is the bull flag pattern?

Bull flags are considered highly reliable in trending markets, especially when confirmed by volume and aligned with key technical levels like Fibonacci retracements.

Could XRP fall below $1.90?

While possible in a worst-case scenario, such a drop would require strong bearish catalysts. As long as key supports hold, the likelihood of a deeper fall remains low.

👉 Stay ahead of market movements with real-time charting and advanced technical tools.

Final Outlook: Bullish Bias Intact Despite Short-Term Volatility

Despite recent price weakness, the technical outlook for XRP remains fundamentally bullish. The formation of a bull flag on the 4-hour chart suggests that this dip could be nothing more than a healthy consolidation before the next leg up.

Traders should closely monitor price action around $2.125 and $1.93 for signs of demand resurgence. A bounce from either level, combined with a breakout above $2.46, would strongly reinforce the bullish case.

With Fibonacci levels providing clear guidance and momentum indicators hinting at a temporary pause rather than a reversal, now is a strategic time to assess entry points and position sizing ahead of what could be a significant move in early 2025.

Whether you're a day trader capitalizing on technical setups or a long-term investor tracking macro trends, XRP’s current chart structure offers compelling opportunities—for those who know where to look.