XRP Price Analysis: Bulls Defend $2.40 Support Amid Broader Market Rally

TLDR

• XRP has formed a bullish flag pattern after breaking above $2.40, with technical indicators suggesting further upward momentum
• The cryptocurrency is currently consolidating gains while trading above key support levels at $2.35 and the 100-hourly Simple Moving Average
• A potential breakout above $2.45 resistance could trigger a move toward higher targets including $2.55 and $2.65
• Analyst Ali Martinez identifies a bull flag pattern on the 4-hour chart that could lead to a $4 price target if resistance at $2.46 is broken
• The TD Sequential indicator suggests a possible brief correction before continuing upward movement

XRP has demonstrated renewed strength in recent trading sessions, establishing firm support above the $2.40 level while forming several bullish technical patterns. The digital asset has maintained its position above crucial moving averages, suggesting continued buying pressure in the market.

The price action began showing positive momentum after breaking above the $2.25 level, outperforming major cryptocurrencies including Bitcoin and Ethereum. This move was followed by successful tests of the $2.32 and $2.40 resistance levels, which have now turned into support zones.

During the recent upward movement, XRP reached a local high of $2.480 before encountering selling pressure. The subsequent price action has resulted in a period of consolidation, with the asset maintaining stability above the $2.350 mark and the 100-hourly Simple Moving Average.

Technical analysis reveals the formation of a bull flag pattern on the price charts, traditionally considered a continuation pattern. The pattern emerged after a strong upward move from the $1.899 swing low, with the flagpole extending to the recent high of $2.48.

$XRP appears to be forming a bull flag! Still, the TD Sequential recently presented a sell signal on the 4-hour chart, which leads me to believe #XRP may see a brief correction before a breakout above $2.46 that could send the price to $4! pic.twitter.com/L8zwMYT1Rb

— Ali (@ali_charts) December 12, 2024

The consolidation phase is taking place within a parallel channel, characterized by lower highs and lower lows. This price action typically precedes another potential move higher, pending a successful breakout above the pattern’s upper boundary.

Support levels have been established during this consolidation period, with immediate backing found near the $2.30 mark. A secondary support zone exists around $2.260, which could prove crucial for maintaining the current bullish structure.

The hourly MACD indicator has begun showing increasing momentum in the bullish zone, providing additional technical confirmation of the positive bias. This is complemented by the Relative Strength Index (RSI), which remains positioned above the 50 level, indicating healthy buying pressure.

XRP Price on CoinGecko

Looking at potential resistance levels, the price faces immediate hurdles near $2.450. A successful breach of this zone could open the path toward the psychologically important $2.50 level. Further resistance levels are noted at $2.550 and $2.650, with some analysts suggesting the possibility of reaching $2.720 in the near term.

The technical setup has caught the attention of several market analysts, including Ali Martinez, who highlighted the bull flag formation on the 4-hour timeframe. Martinez suggests that a breakout from this pattern could potentially lead to a move toward the $4 level, based on traditional technical analysis measuring methods.

However, the TD Sequential indicator has completed a sell setup with nine consecutive green candles, suggesting the possibility of a brief correction before any major upward movement. This technical signal adds a layer of caution to the otherwise bullish outlook.

In the event of a downward move, the price structure maintains several support levels that could prevent a deeper decline. The first notable support sits at $2.30, followed by $2.260. A break below these levels could extend the correction toward $2.180, which coincides with the 50% Fibonacci retracement level of the recent upward move.

The volume profile during this consolidation phase has remained steady, indicating sustained market interest at current price levels. This suggests that traders are actively participating in the market despite the temporary slowdown in upward momentum.

Short-term traders are closely watching the $2.45 resistance zone, as a clear break above this level could trigger a new wave of buying pressure. The presence of increasing buy orders near the support levels suggests strong market interest in defending the current price range.

Market data shows that XRP has maintained its position above key moving averages throughout this consolidation period, providing technical support for the current price structure. This alignment of moving averages typically serves as a buffer against sharp price declines.

The cryptocurrency’s price action has created a series of higher lows since the upward movement began, indicating persistent buying pressure despite periodic selling waves. This pattern of price behavior often precedes larger market moves.

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