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- XRP may soon rally to $5 as technical indicators show bullish signs.
- Falling Bitcoin dominance supports XRP’s potential growth.
XRP, one of the most-watched digital assets in the crypto market, has emerged with fresh focus after analysts called for increased buying to push the asset to record highs. Many investors specialize in technical analysis or charting, and since the recent spike in Ethereum’s value relative to some of its key technical metrics, people have been looking at new opportunities.
Bull Flag Pattern Confirms XRP’s Upward Trend
In November, XRP showed a spectacular breakout, rising from $0.51 to $2.90 by December 3, 464% in one month. While it has retraced and formed an area of consolidation between $2 and $2.60, analysts are positive. Market expert Steph said this phase is characterized by rampant consolidation in preparation for another massive run, and it wouldn’t be long before XRP investors smile at the bank.
Technical Patterns Suggest XRP Aiming for $5
As Steph said, several indicators on the technical levels can support a breakout. To understand this better, the widening of the Bollinger Bands on XRP’s 4-hour chart points to a likely breakout. Previous expansions in November led to between 53% and 132% surges. The current expansion suggests a rally similar to this market.
This means that XRP also moved past the bullish flag pattern, which is often a way of indicating that the upward surge will continue on the higher timeframe. Staying above the very important $2.33 support level strengthens the bullish outlook, but a break below this level may complicate the picture. $2.60 is another significant level, according to Steph. To go above $2.60, daily closing levels the way open for $4.90 to $5 in ST/MT.
EMA ribbons on the daily chart also underscore this bullish trend, with the ‘9’ daily moving average above the ‘13’ daily moving average. Another evidenced indication is with reference to ribbons, where XRP has recently bounced off them, affirming the trend.
Bitcoin Dominance Breaks Key Levels Favoring Altcoins
According to Steph, low Bitcoin domination is another positive sign for altcoins such as XRP. One of the strategically important levels has been violated, according to which Bitcoin’s market share for tests is 59%, potentially moving to 47-50%. In the past, declines such as these caused altcoin seasons, during which assets such as XRP could skyrocket.
Still, the analyst encourages investors to pay attention to Bitcoin’s dominance mark as they approach the 47 – 50 % support level. Although this area might signify a change of trend in this market, Ripple is poised for higher gains so long as key supports are held.
Priced at $2.50, XRP had very little volatility on the last day. Experts continue to monitor activity as the token nears key levels that may influence the crypto’s next steps on the way up.
