Yerevan (CoinChapter.com) — Ripple Lab’s native token XRP is facing the prospect of logging a 100 percent upside rally, according to readings on a classic technical indicator.
Dubbed as Bull Flag, the technical indicators surface when an asset starts trending lower following a massive move upside, such that it forms a sequence of lower highs and lowers lows inside a parallel trading channel. Eventually, the price breaks out of the range to the upside. That earns Bull Flag the title of a bullish continuation indicator.
XRP declined between April 15 and April 25. The Ripple token ticked all the boxes to qualify its downside correction as a Bull Flag one. Its price fluctuated between two lines — a resistance trendline, which capped the upside attempts, and a support line, which kept the token from falling further down; and its consolidation move preceded a major bullish price action, also known as “flagpole.”
The chart below demonstrates the previous uptrend — ranging from April 2 until April 14, peaking at $1.83 following a 221 percent raise. Now, should the price breaks out of the Bull Flag pattern, it would tend to rise by as much as the Flagpole height. That roughly puts XRP en route to a $2.20-valuation, constituting a 100 percent gain from where the token trades at press time.
Other Upside Prediction for XRP
Vince Prince, an XRP analyst, spotted another formation on the token’s 2H chart. He indicated an Inverse Head & Shoulders (H&S) pattern, which predicts an upcoming bullish trend. The analyst suggested that the price will rise to $1.95 at the beginning of May.
The estimations suggested by both the Bull Flag and the Inverse H&S indicators place the XRP price around the $2.00 margin. This will constitute the yearly high for the token.
There’s also a noticeable upward trend in the 20-day Exponential Moving Average (EMA) line (the blue line on the chart above). It can act as a support cushion for the price correction. When the price starts approaching the EMA 20 line, it often rebounds from it as the traders enter a buying period, trying to keep the token afloat.
According to Jebb McAfee, a cryptocurrency analyst, an ascending EMA 20 line is a “strong predictor” of an upcoming bullish rally.
Although there is a valid opinion that the XRP rally is “not backed by anything substantial,” the price continues to ascend. Meanwhile, the Securities and Exchange Commission (SEC) is not backing down its lawsuit against Ripple Labs. The proceedings dragged on, influencing the blockchain company’s token price.
If the technical predictions are correct, Ripple supporters can expect the bullish uptrend to continue, locking a price above $2.00 as a result.