XRP Bull Flag Breakout Could Propel Price to $11

Crypto analyst Luke has recently highlighted the emergence of a bull flag breakout for XRP, potentially driving its price to $11. This level would represent a new all-time high for the altcoin, even as the market faces challenges related to escalating tensions between the U.S. and Iran.

Key Takeaways

A bull flag pattern has formed on the XRP weekly chart, possibly increasing the price to $11.
The anticipated rally could represent a significant upside of nearly 700%.
Institutional accumulation might signal a potential price surge, despite recent ETF outflows.
Analysts suggest the current price may experience further downside pressure before rallying.
XRP needs to reclaim specific resistance levels to confirm a bullish trend.

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XRP Poised for $11 Rally Amid Bull Flag Formation

In a post on X, Luke pointed out that a bull flag pattern is appearing on the XRP weekly chart, targeting a price of $11. He described this pattern as a traditional bull flag following an 8-month period of consolidation. Notably, a measured move based on the pole height indicates a rally to precisely $11, while an extension using the 1.618 Fibonacci could see XRP reach $11.20.

This anticipated move suggests a potential upside of nearly 700% from the current price. Luke believes that such a rally is plausible as institutional investors accumulate more XRP, indicating a forthcoming “parabolic leg” in the price action. However, it is essential to be cautious, as XRP ETFs have experienced net daily outflows recently, coinciding with rising tensions between the U.S. and Iran.

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Source: Chart from Luke on X

Recent data from SoSoValue indicates that funds had outflows of $6.15 million and $16.62 million on March 5 and 6. Consequently, the total net assets of these XRP ETFs have fallen below $1 billion. Along with the broader crypto market, XRP is currently under downward pressure, exacerbated by the escalating conflict pushing oil prices to multi-year highs.

Analysts like CasiTrades are predicting that XRP could drop to as low as $0.87, as it remains under the resistance level of $1.67. Egrag Crypto has similarly indicated that XRP may decline to around $0.85 after being rejected at the $1.55 level.

Analyzing Current Price Dynamics

In another post on X, analyst JB remarked that all previous price wicks, including the one seen on October 10, have filled into the demand zone. According to JB, there is limited downside potential left if XRP is operating within a higher timeframe bullish environment. JB noted that the initial attempt to reclaim the $1.61 level was unsuccessful, making a retest of the $1.25 and $1 levels probable.

To negate the prevailing bearish structure, XRP must reclaim the $1.61 position and breach the diagonal resistance line. JB emphasized that achieving this would greatly enhance the likelihood of resuming a wider upward trend after roughly 15 months of correction. “This current area provides one of the most compelling risk-to-reward setups for higher timeframe spot longs, with invalidation occurring below the gray demand zone,” as JB articulated.

As of the latest data, XRP is trading at about $1.36, reflecting a decline of over 2% in the last 24 hours, according to CoinMarketCap.

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XRP trading at $1.36 on the 1D chart | Source: XRPUSDT on Tradingview.com