Analyst Predicts Major XRP Rally Beyond $13 If This Bullish Pattern Is Valid

A recent analysis by market expert Tony The Bull Severino suggests that XRP might be positioned for a significant price increase.

Severino, a Chartered Market Technician and seasoned trader with over 15 years of experience, highlighted the potential for the asset to surge to $13.4 if a developing bull flag pattern materializes on the daily chart.

XRP Bull Flag Formation Observed

Severino’s observations stem from recent price movements of the token. The digital asset valued at $0.4956 on November 4, surged dramatically to reach a seven-year high of $2.9 by December 3, marking a 485% increase within a month. This sharp upward movement formed the flagpole portion of the suspected bull flag pattern.

Following this surge, XRP faced a pullback from the $2.9 peak and consolidated within the $2 range. Severino interprets this consolidation phase as potentially forming the bull flag portion of the pattern, signaling that the asset may be building momentum for another upward breakout. However, he acknowledged the possibility that this pattern might instead represent a descending channel rather than a bullish structure.

XRP Potential Price Surge to $13.4

Bull flag formations are typically characterized by an initial price surge followed by a consolidation period, eventually leading to a continuation of the upward trend. If this pattern holds for the token, the price could experience a breakout matching the length of the previous rally. Given the 485% increase in November and December, a similar rise from current levels would push XRP to approximately $13.4, according to Severino’s projections.

While he admitted that this price target surpasses even his most optimistic expectations, Severino emphasized that such outcomes, although ambitious, are not entirely unrealistic. If the token reaches this value, its market capitalization will exceed $769 billion, surpassing Ethereum’s current valuation.

Additional Bullish Indicators for XRP

In addition to the potential bull flag pattern, other technical indicators support Severino’s positive outlook. Notably, XRP’s quarterly Relative Strength Index (RSI) has climbed above 70. The last occurrence of this indicator level was in January 2018, coinciding with the token’s previous all-time high of $3.31.

Furthermore, XRP recently closed a yearly candle above the $2 mark for the first time in its history and surpassed $3 for the first time since 2018, reinforcing its current bullish momentum. The asset is currently trading at $3.07, maintaining its position as a market leader while Bitcoin remains under $100,000.

Although Severino’s predictions point to significant potential gains for XRP, market dynamics remain unpredictable. The realization of such price targets would depend on sustained demand, market sentiment, and broader industry trends. Nonetheless, the possibility of a continued rally keeps the token firmly in the spotlight as traders closely monitor price developments and chart patterns.

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