Can Bull Flag Pattern Drive 26% Gains In December?

XRP Price Prediction: The crypto market is consolidating led by the largest digital asset Bitcoin and selected altcoins like XRP, ETH, Cardano, and more. The leading cross-border money remittance token, although remaining relatively unchanged in the last 24 hours, is down 2.1% in seven days and a cumulative 6% in a fortnight based on market data from CoinGecko.

XRP Price Prediction: XRP On The Verge of 26% Move

The formation of a bull flag pattern on the four-hour chart hints at a 26% breakout if confirmed. This is a bullish pattern created by two price rallies set apart by a minor consolidation.

Initially, buyers triumph over sellers as the price forms the flagpole. However, as the uptrend stalls, like in XRP’s case at $0.73, a correction takes place within parallel upper and lower trendiness—the flag.

XRP price snapped out of the initial rally mainly due to profit taking which led to the formation of a tight range with slightly lower highs and lower lows. As bulls and bears tussle, a breakout is expected above the flag which would propel the XRP price 26% to $0.72.

The ongoing mundane price action around $0.6 implies that traders are preparing for the next breakout should the price pierce through the upper range level, indicating that bulls have the reins and are ready to push another rally.

Besides the flag pattern, the XRP price technical outlook is also shaped by the 200 Exponential Moving Average (EMA) (purple) resistance at $0.6083.

Holding above this level means that momentum is growing in support of the bullish theory.

Subsequent movement above the flag pattern resistance, which coincides with the 50 EMA (red) and the 200 EMA (blue) could mark the beginning of the rally to $0.73.

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The On-Balance Volume (OBV) indicator suggests that neither bulls nor bears have the upper hand at the moment. XRP price would keep consolidating until the next breakout. Therefore, caution is advised in the meantime to avoid sinking into losses and getting liquidated, especially with the Relative Strength Index (RSI) below the midline but above the oversold region.

Upholding support on the daily chart is the 50-day EMA at $0.5973. Below this level, XRP price could seek liquidity at $0.58 – a support level highlighted by the 38.2% Fibonacci retracement.

Other key levels to keep in mind going into December are the next key support at $0.54 and the 50% Fibonacci at $0.6135. Trading above this range would pave the way for gains to $0.73 (bull flag target) and later to highs above $1.

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