XRP Eyes $5: Four Rare Bullish Patterns Signal Major Upside for Ripple's Token in 2024

XRP Price Pauses After Impressive Rally, But Bullish Patterns Suggest More Gains Ahead

XRP, the digital asset powering Ripple’s blockchain ecosystem, has seen its remarkable rally take a brief pause as traders lock in profits. Despite this short-term pullback, technical analysis indicates that XRP may have much more room to run in 2024. Experts have identified at least four rare and highly bullish chart patterns on XRP’s daily charts, hinting at further upside — possibly pushing the token past the $5 mark before year’s end.

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XRP Price Overview and Market Performance

On July 23, XRP was trading at approximately $3.40, slightly below its yearly peak of $3.65. While this minor correction has caught the attention of short-term traders, seasoned crypto investors are looking closely at the underlying patterns forming on Ripple’s price charts for clues about the next big move.

Four Rare Bullish Chart Patterns Identified

Technical analysts are highlighting four unusual and powerful bullish formations on the XRP chart:

• Golden Cross
• Bullish Pennant
• Cup and Handle Formation
• Bullish Flag Pattern

The ‘Golden Cross’ pattern emerged on July 11, when XRP’s 50-day weighted moving average surged above its 200-day moving average. This technical event typically signals a strong bullish trend and historically has set the stage for explosive price growth. Indeed, following a similar golden cross in November last year, XRP’s price spiked by more than 500%.

A classic ‘Cup and Handle’ pattern is also apparent, stretching from a resistance level at $3.39 down to support near $1.62. The depth of this formation, around 53%, points to a bullish target of approximately $5.20 according to chart technicians.

Meanwhile, XRP is in the midst of forming a ‘Bullish Flag’ — a pattern that combines a sharp rally (the flagpole) with a subsequent consolidation phase. Traditionally, breaking upward from this setup could project another major move, with the flagpole’s 47% length suggesting a potential price target of $5.36 for XRP.

To complete the robust technical picture, XRP has also carved out a large ‘Bullish Pennant’ since November, taking shape over seven months and often preceding significant breakouts in the crypto market.

Elliott Wave Structure Adds Fuel to Bullish Case

In addition to these rare patterns, analysts note that XRP appears to be following an Elliott Wave impulse, with three waves already formed. After a brief correction (wave four), the fifth and final impulse could lead to another surge in price.

Key Catalysts Powering Ripple (XRP) Into the Spotlight

Beyond the technicals, fundamental catalysts are stacking up for Ripple and the broader XRP ecosystem. On prediction markets like Polymarket, the odds of a spot XRP ETF approval have now climbed above 80%, reflecting growing confidence in regulatory breakthroughs.

Funds tracking spot Bitcoin and Ethereum have collectively attracted over $65 billion from institutional and retail investors, proving strong demand for crypto exchange-traded products. Ethereum ETFs alone have pulled in nearly $8 billion, suggesting altcoin investment vehicles like an XRP ETF could also see impressive inflows.

Recently, the Teucrium 2X XRP ETF has accumulated more than $500 million in assets within just three months, underscoring Wall Street’s burgeoning interest in crypto as a mainstream alternative asset class.

Ripple Expands in DeFi With XRP Ledger Innovations

The XRP Ledger’s role in decentralized finance continues to expand, amplified by its integration with the Wormhole protocol. In the last 30 days, the total value locked (TVL) on the network has soared 72%, reaching $93 million, with stablecoin supplies exceeding that amount. This strengthens XRP’s position as a key player in both payments and DeFi.

Ripple’s prospects have also been boosted by the passage of the GENIUS Act, which promises to clarify the regulatory framework for stablecoins. Ripple’s own USD-backed stablecoin has seen its market cap jump by $520 million, positioning it for future growth in a rapidly evolving market.

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Conclusion: XRP Primed for a Potential Breakout

With multiple bullish technical patterns aligning and fundamental catalysts accelerating, XRP is poised to make significant gains in 2024. As both traders and long-term investors eye the $5 target, Ripple’s token could see renewed momentum fueled by ETF approvals, DeFi expansion, and institutional adoption. Crypto enthusiasts should monitor XRP closely as these key narratives continue to unfold.