XRP Eyes $4 as Bullish Pennant Signals Major Breakout
XRP is ending January as the best-performing asset among the top 10 cryptos. In the last 30 days, its price has increased by nearly 50%, surpassing the gains Solana (SOL) registered within the same period.
Amid this performance, the altcoin attempted to mark a new all-time high. But it faced rejection as soon as it hit $3.29.
However, this rejection has led to the formation of a bullish pattern. Based on this analysis, XRP’s price could hit multi-year highs if it breaks out of this pattern
History Support XRP Incoming Surge
On the daily chart, XRP’s price has formed a bullish pennant. A bullish pennant is a pattern that indicates the continuation of a strong uptrend. It forms when the price surges higher, briefly consolidates within converging support and resistance and then resumes its rally.
As seen below, XRP formed this same pattern between Nov. 11, 2024, and Dec. 31.
The outcome of this pattern was a rally from a local low of $2.18 to $3.29 on Jan.20.
This price increase represents a 50% increase within one month. As of this writing, the token is consolidating between $3.01 and $3.28.
As the prices swing sideways, the Chaikin Money Flow (CMF) remains in positive territory, signaling strong accumulation.
The CMF tracks the capital flow into and out of an asset, helping to identify the level of accumulation and distribution.