NOIDA (CoinChapter.com)—XRP’s recent price action reflects a resurgence in bullish sentiment. The token consolidated near the $2.20 support level, inching toward the critical $2.30 resistance.
Ripple’s ongoing advancements in legal clarity and business expansion bolster the token’s outlook. The launch of Ripple Liquidity Hub (RLUSD), which targets enhanced enterprise liquidity, has attracted investor interest. The platform simplifies multi-asset liquidity access, which could help Ripple add bullish cues in 2025.
Moreover, bullish cues stem from Ripple’s increasing foothold in the CBDC sector. Its partnerships with central banks aim to leverage XRP Ledger for secure, low-cost payment infrastructures.
Furthermore, regulatory developments in the U.S. favoring XRP’s status as a non-security could catalyze its value in 2025. The growing institutional adoption of XRP for remittance services could solidify the token’s position as a utility-driven asset.
A technical setup further adds to the bullish cues favoring XRP price action in 2025.
Flag Could See XRP Nearly Triple In Value
The XRP USD pair formed a bullish technical setup, the ‘bull flag pattern,’ which could add to the bullish cues favoring the token.
A bull flag pattern is a common continuation formation in technical analysis, signaling the potential for a strong uptrend to resume. The pattern consists of two components: the flagpole and the flag. The flagpole forms after a steep, near-vertical rally driven by aggressive buying pressure. This is followed by a consolidation phase, which forms the flag.
XRP USD pair formed a bullish pattern with a 178% upside target. Source: TradingviewDuring this phase, prices typically trade within a narrow, downward-sloping, or sideways channel, as traders temporarily take profits, but bulls maintain control, preventing significant declines.
The consolidation reflects market participants reloading positions, creating a base for the next leg up. Importantly, the selling pressure during the flag phase is relatively muted, signaling that the uptrend remains intact.
When the breakout occurs above the flag’s upper boundary, it typically continues the prior uptrend. The breakout volume is a critical confirmation of the pattern, indicating renewed bullish momentum.
The price target for a bull flag breakout is calculated by adding the length of the flagpole to the breakout level. Applying this to XRP’s current setup, the flagpole extends from its recent vertical rally, suggesting a potential price target near $4.36—a 178% increase from current levels..
Such a target aligns with XRP’s broader bullish narrative, supported by increased adoption, Ripple’s legal clarity, and fundamental tailwinds like the development of its Liquidity Hub and growing institutional use cases.
However, traders should watch for confirmation of the breakout above the flag and ensure volume supports the move, as invalidation of the pattern could lead to retests of lower support levels.
Consolidation Continues For The Ripple Token
XRP’s recent price action highlights a period of consolidation following its strong rally in late November, with the token currently trading near $2.16. The level aligns with the lower boundary of the Value Area identified by the Volume Profile Visible Range (VPVR). The VPVR indicates significant trading activity between $2.13 and $2.52, indicating a key zone for support and resistance.
XRP USD daily price chart with RSI.The Point of Control (POC) is around $2.13, suggesting strong buyer interest, making it a crucial support zone for XRP. Should the token fail to hold above the POC, the next significant support lies near $1.9. Failure of the immediate support level might force the Ripple token price to test the support at around $1.53 before recovery.
On the upside, resistance appears near $2.6, which aligns with the value area’s upper boundary and the 0.618 Fibonacci retracement level. A breakout above this level could pave the way for XRP to retest the $3 psychological level near the 0.786 Fibonacci level.
The relative strength index for XRP remained neutral, with a score of 50.45 on the daily charts.