During Wednesday’s trading session, the crypto market experienced heightened selling pressure following the U.S. Federal Reserve’s announcement of a 25 basis point rate cut, bringing rates to 4.25-4.5%. This development led Bitcoin to drop to a low of $102K, reigniting bearish sentiment across the altcoin market. In tandem with BTC, XRP price retraced to retest the recently breached resistance from its flag breakout, signaling a potential pivot for the next rally.
As of now, the XRP price trades at $2.29 with an intraday loss of 10.2%. According to Coingecko, the asset’s market cap is at $131.2 Billion, while the 24-hour trading volume is at $19 Billion.
Key Highlights:
- Renowned trader Peter Brandts reveals a bullish continuation pattern in the XRP price.
- The flag breakout sets an initial target of $3, followed by an extended push to $3.5.
- The coin price trading above the daily exponential moving average (20, 50, 100, and 200) hints the broader trend remains bullish.
XRP Price Eyes $3 as Half-Mast Flag Signals Bullish Momentum
Prominent trader Peter Brandt has highlighted a potential bullish setup for XRP, suggesting the asset is resolving a half-mast flag formation. This technical pattern, typically a sign of trend continuation, indicates that the distance of the price’s upward movement could mirror the flagpole’s initial advance.
Theoretically, the chart setup displays a long-diagonal trendline representing the dominating trend in an asset, followed by a temporary pullback. The correction resonates within two downsloping trendlines, allowing buyers to revive the exhausted bullish momentum before the next leap.
Amid the November rally, the Ripple crypto showed two similar patterns, indicating a cyclic behavior of this asset to regain bullish momentum.
On December 14th, the XRP price gave a bullish breakout from the pattern resistance trendline as signals for uptrend continuation. However, with the recent market pullback, the coin price reverted to breach the trendline as a potential support.
Sustaining this flipped support, the XRP price could chase the initial target of $3, registering a potential growth of 25%. If the pattern holds true, the buyers could drive an extended rally to $3.5.
On the contrary, a reversal below the breached trendline could invalidate the bullish thesis and trigger a fresh correction.
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