XRP is showing strong momentum, breaking key resistance levels and forming bullish patterns that suggest significant upside potential. As of January 28, XRP is eyeing $4 as its next milestone, fueled by technical and fundamental factors.
XRP Breaks Key Resistance: $4 in Sight
After rising approximately 58.50% year-to-date to reach $3.19, XRP is forming a bull flag breakout on its 4-hour chart. This classic technical pattern indicates a continuation of its uptrend, with analysts projecting a 28% increase toward $4 in the coming weeks.
- Bull flags typically resolve with price gains equal to the length of the prior uptrend.
- Since mid-January, XRP has been testing its flag pattern’s upper trendline, and confirmation of this breakout could drive prices higher.
If XRP fails to maintain its momentum, the price could retest its lower trendline near $2.75, supported by the 200-4H EMA. However, with an RSI of 56, there’s still room for additional upward movement.
Liquidity Zones Point to $3.30-$3.37 as Key Levels
On Binance’s XRP/USDT trading pair, the liquidation heatmap highlights critical liquidity zones that could impact price action:
- A strong resistance cluster exists around $3.30, where a high volume of leveraged positions is concentrated.
- Clearing this level could trigger a liquidation squeeze, pushing prices toward the next liquidity zone at $3.37.
Long-Term Bull Pennant Breakout: $14.45 by 2025?
In a larger context, XRP has entered the breakout phase of a bull pennant pattern on its weekly chart. This structure suggests a potential rally toward $14.45 over the next few years.
Key levels to watch include:
- The 1.618 Fibonacci level at $3.03, which XRP has already surpassed.
- Next targets at $4.82 (2.618 Fib), $8.39 (4.618 Fib), and the full breakout target of $14.45.
Additionally, XRP is trading well above its 50-week EMA ($1.25) and 200-week EMA ($0.73), reinforcing its bullish outlook.
Potential Risks: Bearish Divergence in Play
Despite XRP’s ongoing rally, a bearish divergence in its RSI indicates waning momentum. This could lead to a short-term pullback if support levels fail to hold:
- A drop below $2.90, which aligns with the 1.618 Fibonacci retracement level, could signal further downside.
- Next potential support levels include $1.91 and $1.57.
Fundamentals Support XRP’s Continued Growth
Fundamentally, XRP’s outlook remains robust, driven by Ripple’s strategic expansion and trader confidence. Expectations for a resolution to the SEC lawsuit and the introduction of spot XRP ETFs could also catalyze further growth.
Ripple CEO Brad Garlinghouse is actively advocating for broader U.S. crypto adoption, which may support XRP’s long-term trajectory.
With strong technical and fundamental support, XRP appears poised for further gains in the months and years ahead.
