XRP has formed a bullish pennant after a 50% rally | Credit: Derek Fenech
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Key Takeaways
XRP is consolidating between $3.01 and $3.28, forming a bullish pennant.
Historically, this movement sends XRP’s price higher than it did in late 2024.
If XRP clears the key resistance at $3.40, it could hit a new all-time high.
XRP is ending January as the best-performing asset among the top 10 cryptos. In the last 30 days, its price has increased by nearly 50%, surpassing the gains Solana (SOL) registered within the same period.
Amid this performance, the altcoin attempted to mark a new all-time high. But it faced rejection as soon as it hit $3.29.
However, this rejection has led to the formation of a bullish pattern. Based on this analysis, XRP’s price could hit multi-year highs if it breaks out of this pattern.
On the daily chart, XRP’s price has formed a bullish pennant. A bullish pennant is a pattern that indicates the continuation of a strong uptrend. It forms when the price surges higher, briefly consolidates within converging support and resistance and then resumes its rally.
As seen below, XRP formed this same pattern between Nov. 11, 2024, and Dec. 31.
The outcome of this pattern was a rally from a local low of $2.18 to $3.29 on Jan.20.
This price increase represents a 50% increase within one month. As of this writing, the token is consolidating between $3.01 and $3.28.
As the prices swing sideways, the Chaikin Money Flow (CMF) remains in positive territory, signaling strong accumulation.
The CMF tracks the capital flow into and out of an asset, helping to identify the level of accumulation and distribution.
Further assessment of the daily chart shows that XRP’s value remains above the Key Exponential Moving Averages (EMAs).
For most of July to November 2024, the 20 EMA (blue) and 50 EMA (yellow) traded above the altcoin’s value. Trading above the cryptocurrency’s value indicated that the trend around XRP was bearish.
However, since November, the token has held its ground against dropping below the crucial indicators.
If the cryptocurrency continues to trade above the EMA, then XRP might resume its rally within a short period. Should that be the case, the token’s first stop could be around $3.40.
Once it clears this hurdle, the next level for the altcoin to reach might be $4, which would represent a new all-time high.
However, if the token declines below the lower trendline of the pennant, this forecast might not come to pass.
Instead, the XRP price could face a correction that could take it to the 0.618 Fibonacci level at $2.25.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
