XRP price slowly forms a bullish pattern: can Ripple hit $5

XRP price is slowly forming a very bullish pattern that could lead to a strong breakout in the near term.

Ripple (XRP) was trading at $2.4 on December 13, 28% above this week’s low and a few points below the year-to-date high of $2.90.

XRP price forms a bullish flag

The daily chart shows that Ripple is slowly becoming quite bullish, which could lead to a strong reversal in the next few days.

It forms a bullish flag formation, characterized by a long vertical line and a rectangle-like formation. In this case, the flag began forming in late October and ended in November. It has been forming the flag section since December 2.

In most periods, an asset tends to rally strongly once the flag pattern is completed. In the case of XRP, the breakout will complete when it breaks above the descending channel.

XRP also formed a hammer pattern on December 10 with the bottom along the 38.2% Fibonacci Retracement point at $1.9690. The hammer consists of a long lower shadow and a small body and is a popular bullish reversal pattern.

There are also signs that Ripple is in the Elliot corrective wave following the impulse wave. It also remained above the 50-day and 100-day Exponential Moving Averages.

Therefore, the XRP price has more room to move. A move above the upper part of the flag at $2.90 will confirm the bullish view. The first point to watch from now on will be the psychological point of $3 and then $5.

XRP price chart | Source: crypto.news Potential catalysts for Ripple

Ripple faces multiple catalysts ahead. First, there are signs that XRP whales are accumulating tokens. According to CryptoQuant, whale activity has surged to an all-time high, signaling that major investors are embracing it.

XRP whales are buying | Source: CryptoQuant

Second, Ripple Labs has received approval from New York regulators to launch its RLUSD stablecoin. The developers hinted that the stablecoin will be released soon. While it’s too early to determine whether it will be successful, the launch will likely generate excitement from investors.

Third, there is a possibility that XRP Ledger will start to gain traction among developers. Data shows the network has over $63.5 million in assets; This figure will continue to grow.

Moreover, and most importantly, Ripple will likely have an ETF as Donald Trump promises to be a crypto-friendly president. All these factors could lead to further XRP price increases in the near term.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.