After a phenomenal 2024, which saw XRP’s price surge from around $0.50 to as high as $2.90, the cryptocurrency is now range-bound, trading at $2.31 at the time of writing. However, a key pattern on the weekly chart suggests that XRP could be on the verge of another significant breakout.
Half-Mast Flag Pattern Can Propel The Digital Asset To New Highs
XRP, the fourth-largest cryptocurrency with a total market cap of over $134 billion at the time of writing, had a spectacular 2024. The digital asset’s price increased more than five times in less than two months, following its victory in a key lawsuit against the US Securities and Exchange Commission (SEC).
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In a recent post shared on X, veteran trader and analyst Peter Brandt shared his thoughts on XRP’s potential future price trajectory. Brandt highlighted the formation of a ‘half-mast flag’ pattern on the weekly timeframe, adding that a bullish completion of the pattern may propel XRP to new highs. He noted:
Half mast flags should complete within six weeks, otherwise they should be viewed with great suspicion. This flag in XRP needs to rock and roll soon, otherwise it will likely morph into something else TBD. But if it completes, then market cap of $500 B is possible.
For the uninitiated, a half-mast flag is a continuation pattern in trading where the price forms a sharp upward movement followed by a brief, shallow consolidation that resembles a flag, typically sloping against the prevailing trend.
When the price breaks out of the consolidation phase, it often signals a continuation of the uptrend, potentially leading to higher prices. According to Brandt, a bullish completion to the pattern – a breakout to the upside – could push XRP’s total market cap to $500 billion.
If other cryptocurrencies remain range-bound, a $500 billion market cap would make XRP the second-largest digital asset by market cap, surpassing Ethereum (ETH), which currently holds a market cap of $416 billion.
However, it’s important to note that in the case of a bearish completion of the half-mast flag pattern, XRP’s price could break down to previous lows, potentially falling to a market cap of around $28 billion.
XRP Primed For Major Gains
Meanwhile, crypto analyst Mikybull outlined multiple price targets for XRP on the daily timeframe, using Fibonacci extension bands. According to the analyst, a breakout for XRP “is imminent,” with targets as high as $3.74.
Similarly, Egrag Crypto recently predicted that XRP may surge to $15 according to the Elliott Wave theory. Further, on-chain data indicates that XRP whales are buying every dip in anticipation of a major rally in the coming weeks.
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That said, concerns remain about XRP bulls’ inability to decisively break through the $2.35 resistance level. At press time, XRP trades at $2.31, down 4.5% in the past 24 hours.
Featured image from Pexels, charts from X and TradingView.com
