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In a chart shared by cryptocurrency analyst Ali Martinez, XRP has broken out of a descending channel commonly known as a “bullish flag,” indicating a potential continuation of its recent uptrend. This move paves the way for a push towards $4.40, based on Fibonacci extension levels.
XRP price is looking at $4.40
According to Binance’s 2-hour chart availableAfter reaching this local high at $3.3509, the price turned into a consolidation phase, moving within a downward sloping channel from January 17 through January 19 and briefly falling below the 0.786 Fibonacci retracement level at $3.1021 before bouncing back.
A break above the upper border of the channel, which appeared around $3.20 on January 20, is seen as a classic confirmation of a bull flag. The bull flag pattern consists of two main parts: the rapid, almost vertical rise (the flagpole) and the subsequent, more gradual consolidation (the flag). When an asset’s price closes decisively above the flag’s upper trend line, traders generally interpret this as a signal that the previous uptrend may resume.
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In this specific setup, the flagpole distance is measured from the swing low of $2.3374 to the swing high of $3.3509, resulting in a profit of about $1.01. Analysts then add that distance to the breakout level near $3.20 to approximate a price target in the $4.20 area.
However, Martinez’s chart also includes Fibonacci extensions that provide more detailed potential targets, anchored at 0% ($2.3374) and 1 ($3.3509). These extensions appear at 1.272 ($3.6958), 1.414 ($3.8889), 1.618 ($4.1863), and 1.786 ($4.4475). The analyst points to $4.40 as a key upside target, closely aligned with the 1,786 extension level.
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According to Martinez’s chart, XRP was trading near $3.29, hovering below the local high of $3.3509. If the cryptocurrency manages to hold above the breakout zone and eventually surpasses $3.3509, the chart technicals indicate a possible rise towards successive extension levels in the high $3 range and eventually towards $4.40.
The importance of the $4.40 target lies in the convergence of the Fibonacci analysis with the expected move of the classic bull flag, giving traders a clear bullish sign to monitor the ongoing momentum. While short-term volatility is always possible in volatile cryptocurrency markets, the breakout from the flag consolidation provided a significantly bullish signal, conditional on XRP being able to maintain support around $3.20 and build enough volume to break the $3.3509 threshold.
Notably, XRP was unable to defend the hack. At press time, XRP is back in the channel and trading at $3.06. Hence, XRP bulls need to increase support again to re-validate the scenario.
Featured image created with DALL.E, a chart from TradingView.com
