Ripple-promoted XRP has formed a bull flag on its chart, a technical pattern historically associated with explosive upward momentum for the asset.
Could it be a sign that XRP is nearing a massive breakout in this cycle after consolidating for over 2,400 days?
Potential XRP Breakout Ahead After Years Of Accumulation?
The 3T Warrior Trading Academy X account observed in a recent post that XRP has been consolidating for approximately 2,424 days, dating back to the 2017 bull rally, which saw XRP rocket to new all-time highs.
At the time, the cross-border payments token jumped by 60,000% from the $0.006 level to as high as $3.84 by January 2018. Although a rally of this magnitude might not be possible now, analysts think the XRP price could still register a tremendous rally.
Analysis by the pundit indicates that XRP has carved out a bull flag — a classic bullish continuation pattern — on the technical charts. Notably, this is not just any bull flag as the analyst says it’s the largest bull flag in the history of crypto, presumably because the structure has been forming for years.
Back in 2017, XRP took around 240 days to complete its upsurge. The cryptocurrency is currently trading at $0.5847 on CoinGecko, having failed to breach the critical $0.62 resistance zone. This level has proved to be a key hurdle for XRP, keeping the asset from continuing its recent rally.Â
Even so, the prospects of a stronger short-term rally toward $16 look strong, as a 4.236 Fibonacci extension could unleash a massive bullish wave. If this happens, it would mean a 2,570% climb from current levels.
XRP’s Road Ahead
Apart from the bull flag, the recent conclusion of the nearly-four-year-old case between Ripple and the United States Securities and Exchange Commission (SEC).
The San Francisco-based blockchain payments firm was ordered to pay $125 million for breaking federal securities laws over the sale of the XRP token to institutional customers. That was a fraction of the enormous $2 billion the SEC had sought. The lawsuit, which the SEC lodged in December 2020, had dampened investor confidence for years. Now, the SEC headwinds against XRP are long gone.
The resolution of the case, coupled with the bullish indicators, hints that XRP is well-positioned for a strong price comeback in the coming months.
