XRP Price Analysis: Bullish Technical Signals and Potential Targets Near $4.20

Following a multi-month high of $3.66, XRP’s price has entered a consolidation phase, driven by recent regulatory clarity and institutional adoption. A $50 million settlement in Ripple’s SEC lawsuit, confirming XRP isn’t a security, and the launch of the ProShares Ultra XRP ETF have fueled this momentum, pushing the cryptocurrency’s market cap past the $210 billion mark.

Classic Bull Pennant Pattern Points to $4.20 Target

Technical analysts identify a classic bull pennant pattern forming on the 4-hour XRP candlestick chart. This continuation pattern, characterized by converging trendlines following a sharp price increase, suggests a potential breakout. A move above the pennant’s upper trendline could trigger renewed buying interest, targeting the $4.20 price level. This target is calculated by adding the height of the previous upward move (the ‘flagpole’) to the anticipated breakout point near $3.45.

XRP/USD four-hour price chart. Source: TradingView

Currently, XRP maintains its position above the 50-day Exponential Moving Average (50-day EMA), reinforcing a bullish bias. The Relative Strength Index (RSI) is currently near the neutral 50 level, indicating the market is neither strongly overbought nor oversold and providing room for further gains.

Analyst Views Suggest Higher Price Ranges

Market analyst Mikybull Crypto highlights a comparable pennant structure on the longer-term weekly chart, drawing parallels to previous breakout points. He points out XRP’s recent surge and identifies a 1.618 Fibonacci extension target at $5.32, with more aggressive projections extending the potential upside toward $8.

The technical confirmation strengthens the bullish outlook. A MACD crossover occurred on the weekly chart, with the green MACD line crossing above the yellow signal line, accompanied by a positive histogram shift. This was the first such crossover since late 2024, a precursor to a subsequent significant price increase.

XRP Dominance Index Adds to Case for Continued Rally

Further supporting the bullish thesis, despite recent gains, is the performance of the XRP Dominance Index (XRP.D), representing XRP’s market share relative to the broader crypto market. Currently at approximately 5.30%, the index is near a critical weekly resistance level of 5.50%, which has held since over 2,200 days. Analysts Dom note that a confirmed breakout above this level could significantly signal further gains. Citing historical precedent, such a move could potentially send XRP towards the $7-$10 range.

XRP.D weekly performance chart. Source: TradingView

This article is intended for informational purposes only. Investing and trading involve significant risks, and users are advised to conduct their own research before making any decisions.