Analyst to XRP Holders: Next Leg Up Is Likely to Be Parabolic. Here’s why

Market analyst ChartNerd (@ChartNerdTA) has presented a new assessment of XRP's long-term technical setup, highlighting a bull flag forming above the digital asset's 2021 highs. This pattern is considered a significant bullish signal that warrants close attention.

The analyst emphasized that "$2 is foundational support" and indicated a potential breakout target near $20. His accompanying chart illustrates XRP consolidating within a tightening formation following a substantial price movement earlier in the year.

In late 2024, XRP experienced a historic rally, surging by over 500%. This upward trend peaked in January when XRP reached $3.39, establishing the flagpole for the current technical pattern.

The Bull Flag Structure

The analysis features a clear visual representation of the pattern. The bull flag is positioned above $1.96, a price level that previously capped XRP's ascent in 2021 and is now acting as support. The chart depicts the price candles compressing between two trend lines that define the flag's boundaries.

ChartNerd interprets this formation as a constructive period of consolidation. The current price action exhibits reduced volatility within the flag and an orderly pullback, both of which align with the standard criteria for a bullish continuation pattern.

XRP experienced a breakout from a similar structure in July, reaching an all-time high of $3.65. However, the asset was unable to sustain this momentum and has remained within the bull flag formation since then. ChartNerd, however, anticipates another breakout is imminent.

XRP's Potential Trajectory

The chart indicates higher support levels compared to earlier cycles, suggesting a potential shift in long-term direction. At the time of the analysis, XRP was trading at $2.22, comfortably above the identified support level.

Based on the bull flag pattern, ChartNerd has established a target price of $20.46. This represents a potential increase of 821.6% from its current price. This ambitious target is supported by the measured move method, which calculates the target based on the height of the flagpole.

The flagpole's height is projected to correspond with the potential follow-through in price. For confirmation, XRP would need to decisively break through the upper trend line of the flag. This outlook aligns with the analyst's prior prediction that XRP's next significant rally is likely to be parabolic.

Currently, XRP remains contained within the flag's defined boundaries. The key levels to watch are the $2 support and the upper trend line acting as resistance. While the target of $20.46 is substantially above the current trading range, the identified structure provides a clear framework for anticipating XRP's next significant price movement.