XRP Targets $2: Bullish Pennant Points to a 37% Breakout

XRP’s price action showcases a bullish pennant formation, a technical pattern suggesting an upward breakout. Trading at $1.45, the token eyes a 37% surge to reach the $2 milestone, as projected by Fibonacci extensions and recent chart performance.

The 4-hour chart highlights a consolidation phase following a prior 53.73% rally, forming the pennant structure. With XRP hovering above the critical 0.618 Fibonacci retracement level at $1.42, bullish momentum appears intact. A successful breakout above the pennant’s upper boundary could drive the token to $1.97, aligning with the 1.618 Fibonacci extension level.

Market sentiment further bolsters the bullish case. The recent surge from $1.29 to $1.46 solidifies support zones while increasing trading volume indicates robust buyer interest. Key support levels at $1.356 (0.5 Fibonacci retracement) and $1.29 (0.382 Fibonacci retracement) provide downside cushions.

The bullish outlook remains intact as long as the XRP cryptocurrency sustains above these support levels. Traders are now closely monitoring for confirmation of the breakout, which could propel XRP toward its $2 target.

Buying Pressure Boosts XRP Outlook

CryptoQuant data reveals a drop of over 500 million XRP in exchange reserves on Binance since November 13. This decline in the cryptocurrency’s exchange availability signals reduced sell-side liquidity, a classic indicator of rising buying pressure. As traders move their holdings off exchanges, it reflects their confidence in XRP’s long-term price appreciation potential.

On the other hand, Santiment’s data highlights that whales—holders of 10 million to 100 million XRP—have been at the forefront of this accumulation trend. Over the same period, these high-net-worth investors have added over 700 million XRP to their portfolios, reflecting growing institutional and whale confidence. Given their market influence, whale activity is often seen as a precursor to strong price movements.

The ongoing uptrend in the cryptocurrency aligns with broader positive market sentiment, amplified by political events such as Donald Trump’s U.S. presidential election win. Since the election, XRP has skyrocketed, boasting monthly gains of over 180%. This backdrop, coupled with technical patterns like the bullish pennant, strengthens the token’s narrative for continued growth.

At press time, the XRP token was trading at $1.47, with a market cap of $84.04 billion and a 24-hour trading volume of $7.72 billion.