XRP Price Gears Up for Major Rally to $4.6 as Bull Flag Meets Rising ETF Expectations

Highlights:

• XRP price drops 3% to $2.95 amid a broader market decline.
• The bull flag pattern suggests a potential XRP price surge toward $4.6.
• XRP ETF speculation boosts institutional interest, signaling a potential rally.

XRP started its rally in November due to the expectations of a shift to a more friendly regulatory environment following Trump’s U.S. election victory. For about three years, XRP prices were stagnant due to the Ripple SEC legal battle, which started in 2020 and ended in 2023 in Ripple’s favor.

XRP Price Action

XRP witnessed an upsurge from around $1.88 to $2.9 at the beginning of December. This was followed by a consolidation within a range with lows at $2 and highs at $2.62. The lows of this range have been tested twice, with one being below the lower range bound before the price of XRP started to rise.

Following the broad market decline, XRP has dropped by 3% to trade at $2.95 in the past 24 hours. The bearish trend dropped the XRP price from a high intraday of $3.08 to a daily low of $2.96. Moreover, XRP had declined by 4% on the weekly chart despite the monthly surge of 25%. Its market cap and trading volume have dropped to $172 billion and $4.30 billion, respectively.

Market Expert Predicts Major XRP Price Surge Amid Bull Flag Formation

Popular trader Peter Brandt has observed a bullish pattern in the XRP price chart. According to him, a bull flag formation may well catapult the cryptocurrency to new heights. He believes that XRP can break resistance and rise substantially. His projections suggest a 15% rally to $3.54, possibly a 43% increase to $4.39.

Hey $XRP_pill_poppers
To be clear: I could care less what XRP is going to do. If it goes up I want to be long. If it goes down I've never shorted it, but prefer to troll the poppers.
No other way right now to define the chart other than a bull flag. Of course this could change pic.twitter.com/riMwNI7DMW

— Peter Brandt (@PeterLBrandt) January 30, 2025

Brandt’s analysis reveals the flag formation that indicates the persistence of the upward trend. The typical pattern is to rise sharply and then consolidate before making another leap forward. If XRP breaks the resistance level, the price could go up towards Brandt’s target of $4.6. This half-mast flag structure supports this bullish case. If momentum builds, the price could align with Brandt’s forecast.

Institutional Interest Behind XRP

Speculations on the possibility of an XRP ETF approval are creating a massive boost for the coin. Monica Long, Ripple’s president, recently noted that an XRP ETF might soon be a reality.

Ripple President Monica Long expects to see their new stablecoin RLUSD on more platforms "imminently" and says we will see an XRP ETF soon https://t.co/e4TuV4XPv3 pic.twitter.com/LhfIMNDDs9

— Bloomberg Crypto (@crypto) January 7, 2025

Grayscale Investments recently applied to the SEC for the conversion of its XRP Trust into an ETF to list on the New York Stock Exchange. Other firms such as Purpose Investments, Wisdom Tree, and 21Shares have also entered the race to launch XRP-based ETFs. The increased attention of the institutional players signals a shift in market sentiment with the XRP ETF approval expected to trigger a rally for XRP. 

Technical Analysis: XRP Price Could Rebound Amid Consolidation

XRP price movement on the 4-hour chart displays a consolidation above the $2.70 support level. XRP has recently held above this support with a key resistance at the $3.40 region. As the bearish trend continues to hold, a break below the $2.70 level could lead to a retest of the key support noted at the $2 mark.

Furthermore, indicators such as the MACD and RSI back the bearish momentum in the XRP market. The MACD line has dropped below the signal line and continues to dip further, indicating a shift in market dynamics. The RSI has dropped to the neutral region at 54 indexes, indicating a lack of buying pressure, and could fall to the oversold region, dropping the price further.