XRP’s Bullish Flag Pattern Signals 15% Upside, But Short-Term Dip Looms!

XRP appears to be positioning for a significant upward move after forming a classic Bullish Flag pattern on its daily chart, which could trigger a near-term rally of 15%. This bullish technical setup is backed by optimistic sentiment in the derivatives market, where funding rates remain positive. However, caution is advised: a bearish MACD crossover suggests a potential short-term dip may occur before the anticipated major breakout.

📈 Technical Setup: Bullish Flag and Price Target

The core of the bullish outlook lies in a reliable continuation pattern: Bullish Flag Pattern: XRP's price action shows a strong upward rally (the pole) followed by a period of sideways consolidation (the flag) over the past six trading sessions. This structure typically signals a temporary pause before the rally resumes.Breakout Target: A confirmed breakout above the flag’s upper resistance line would confirm the pattern. This would likely trigger an uptrend matching the preceding "pole," putting a potential 15% rally toward $3.45 on the table. If demand remains strong, the price could even target a new all-time high of $4.Trader Sentiment: Adding confidence to the medium-term upside, XRP’s funding rate in the derivatives market is positive (0.0064%). A positive funding rate means that the majority of traders are holding long positions and are willing to pay short traders, reflecting a strong bullish sentiment in the futures market.

⚠️ Immediate Risk: Bearish Crossover

Despite the promising bullish flag, a key momentum indicator warns of an immediate pullback: Bearish MACD Crossover: The Moving Average Convergence Divergence (MACD) indicator is showing signs of a looming bearish crossover (where the MACD line attempts to drop below the signal line). Historically, this pattern suggests a temporary weakening of buying pressure, indicating that sellers may soon take control.Potential Dip: If this bearish momentum plays out, the price could retreat to the flag's crucial support level around $2.83 before the next major surge can be sustained.

📌 Conclusion: The Next Move Depends on $2.83

XRP is strategically positioned for a significant 15% rally toward $3.45 based on a compelling technical pattern and optimistic derivatives sentiment. However, the immediate price action faces pressure from a bearish MACD signal. Investors should watch the $2.83 support level closely: maintaining this level is crucial for the bullish flag pattern to remain intact for the eventual breakout.

🔐 Disclaimer

This information is a summary of technical analysis and market commentary from a BeInCrypto article and is for informational purposes only. It does not constitute financial or investment advice. The cryptocurrency market is highly volatile, and the conflicting signals from technical indicators (Bullish Flag vs. Bearish MACD) create significant short-term uncertainty. You must always conduct your own thorough research (DYOR) and consult with a professional financial advisor before making any investment decisions.

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