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XRP, the fifth largest cryptocurrency, might be eying 18% gains if a bullish continuation setup on its daily chart is validated.
XRP's recent price consolidation seems to be taking the form of a technical analysis pattern called a "bull flag," which implies that another rally is probable.
A bull flag is a continuation pattern consisting of a pole and a flag. The pole indicates the initial price gain, while the flag represents the subsequent consolidation caused by a lack of strong selling pressure.
A potential breakout from current levels would shift focus to the next resistance at $0.732, representing an 18% increase. XRP could then aim for $0.75 next if this scenario plays out. Buyers must clear this barrier to signal the start of a fresh upward trend.
One encouraging sign is that the current consolidation of XRP is being matched by accumulation by whales or large holders.
According to on-chain data highlighted by Ali, a crypto analyst, XRP whales purchased around 11 million XRP during the last week, valued at approximately $6.82 million.
XRP has been on a steady rise since rebounding from lows of $0.578 on Nov. 22. If today closes in the green, XRP may see its fourth consecutive day of gains. At the time of writing, XRP was up 2.13% in the last 24 hours to $0.63.
On the other hand, if the XRP price turns down from the current level and falls below $0.56, it will herald the start of a harsher downturn to $0.46.
According to data shared by Dr. Martin Hiesboeck, Uphold's head of research, XRP ranks as the most traded asset for the week on Uphold Ascent, an institutional OTC trading platform, and Uphold wallet.