With a bull flag pattern forming on the daily chart, XRP price is poised for a significant breakout. This week, a recovery to $0.56 is likely.
The XRP price defies all odds by accruing 1.5% gains over the past 24 hours. On Tuesday, the cross-border money transfer token was trading at $0.49 with a trading volume of $886 million and a market capitalization of approximately $24 billion.
A recent attempt to recover above $0.52 was able to surpass $0.52 resistance but began to lose momentum momentarily. Although analysts have been advocating for a prolonged retracement—one that would allow XRP to absorb fresh liquidity—bulls are adamantly opposed to relinquishing control.
In spite of this, the XRP price maintains the support offered by the 50-day Exponential Moving Average (EMA) (in red) and the immediate buyer congestion area at $0.48.
A sustained break and hold above $0.5 are required to validate the uptrend and demonstrate to market bears that it is futile to wager against a $1-bound uptrend.
As XRP Bulls Maintain Their Position, Gains Could Exceed $0.50
The XRP price is on the verge of breaking out of a bull flag pattern, which emerged following the abrupt rejection from highs around $0.55 in early June. The initial support provided by the 200-day exponential moving average (purple) encouraged bulls to maintain their positions.
As investors took advantage of the decline to purchase more XRP, a tail force progressively pushed the international money transfer token to $0.5. Nevertheless, XRP was already involved in constructing the bull flag pattern, which, if confirmed, could send XRP to $0.56.
The bull flag pattern indicates a robust market uptrend. Traders interpret the flagpole as an increase in purchasing pressure followed by consolidation Traders would place purchase orders anticipating a breakout above the flag’s upper boundary.
Traders aim to profit from the continuation of bullish momentum and ride the next wave to $0.56 and $1 if the transaction is executed correctly and market conditions usually behave.
Before purchasing XRP for short-term conjecture, investors should consider the incoming buy signal from the Moving Average Convergence Divergence (MACD) indicator.
Such a request to purchase XRP would manifest as the blue MACD line crossing above the red signal line. This indicates that XRP is gaining momentum, with a bullish breakout as the most likely outcome.
Citigroup Evaluates Partnership with a Ripple-Acquired Firm
Citigroup, a significant bank, is reevaluating its partnership with a company Ripple acquired earlier this year for $250 million as XRP attempts to double down on efforts to overcome resistance at $0.5 and $0.56 to pave the way for gains targeting $1.
According to a Bloomberg report, Citigroup may sever ties with the Swiss fintech company Metaco. The information does not indicate whether the bank is severing ties with Ripple.
Since December 2020, Ripple has been fighting a lawsuit with the US Securities and Exchange Commission (SEC) for purportedly selling XRP as an unregistered security to investors.
Metaco, on the other hand, concentrates on offering asset tokenization services to assist businesses in representing traditional assets on the blockchain.
