XRP Could Soar to $150 Amid Bull Flag Pattern
17 Dec, 2024 ● Coin news
The rally of XRP has stalled after a remarkable six-week surge as profit-taking slows its advance toward the $3.00 mark.
On Dec. 16, the XRP/USD pair fell 2% to an intraday low of $2.3 in a corrective trend that began after peaking at $2.90 on Dec. 3.
Consequently, XRP has declined nearly 18% after tripling its value over the past six weeks.
XRP has garnered increasing attention not only for its impressive recent performance but also due to major developments within the XRP Ledger (XRPL) ecosystem, particularly the upcoming launch of the RLUSD stablecoin.
Pegged 1:1 to the U.S. dollar, RLUSD is scheduled to launch on both the XRPL and Ethereum blockchains, backed by cash reserves and U.S. Treasury bills.
Importantly, RLUSD will require XRP for transaction fees.
After receiving approval from the New York Department of Financial Services, RLUSD is expected to be widely used for transactions and savings, especially in emerging economies.
Georgios Vlachos, co-founder of Axelar, believes this development will significantly boost XRP adoption as a payment token in 2025.
He also noted that Axelar’s interoperability platform connects XRPL to 69 other blockchains, ensuring smooth integration across ecosystems.
Meanwhile, Ripple’s Chief Technology Officer David Schwartz cautioned investors about potential supply constraints and price volatility for RLUSD at launch.
Schwartz also addressed concerns surrounding pre-launch bids that appear to be driving RLUSD’s perceived value, stating:
“Rather than reflecting actual market worth, such high bids probably reflect people looking for the novelty of holding the first RLUSD tokens.”
The Ripple executive reassured that the stablecoin’s price would stabilize near its intended $1 parity once supply and demand normalize, despite the expected fluctuations.
Expectations of a crypto-friendly regulatory environment under Trump’s presidency, coupled with RLUSD’s upcoming launch, have fueled significant growth in XRP-tracked futures.
Open interest (OI) reached record highs on Dec. 3, a key indicator that traders and analysts use to gauge market sentiment and anticipate future price movements.
Higher open interest suggests that more money is flowing into the market, increasing the likelihood that the prevailing trend will continue.
Despite the current price correction, the XRP/USD pair is expected to resume its bullish trajectory, forming a classic bull flag technical pattern, which signals an upside outlook.
This “bull flag” pattern appears when a price consolidates lower within a descending channel (the flag) after a strong upward move (the flagpole).
The price then typically breaks above the flag’s upper trendline, rising by the height of the flagpole.
XRP’s recent price movements indicate the formation of such a bull flag pattern, with the next bullish target calculated based on the flagpole’s height.
This target points to approximately $15, representing a 520% increase from the current price.
Sources:
https://cointelegraph.com/news/xrp-price-chart-bull-flag-15-consolidation
