- XRP is ready to resume the upside trend after a short consolidation period.
- The bull flag formation implies 60% growth towards $1.
Ripple's XRP has been losing ground since Tuesday. The third-largest coin with the current market capitalization of $28 billion hit the recent recovery tip at $0.68 and retreated to $0.62 by the time of writing. The coin is down over 5% on a day-to-day basis and on a weekly basis, XRP has lost 9%. Ripple's average daily trading volume stayed elevated at $14 billion.
XRP bulls don't give up
From the technical point of view, XRP is currently developing a bull flag on a 4-hour chart. This bullish formation is characterized by a sharp countertrend with a consolidation period on a short-term time frame.
The flag is a continuation model, meaning that XRP may be ready to resume the recovery with the next target at $1. This level is defined by measuring the distance between the widest point of the flag and adding it to the breakout point, representing a 60% increase.
XRP/USD, 4-hour chart
On the other hand, the local support is created by the lower line of the flag formation at $0.61. A sustainable move below this level will negate the immediate bullish outlook and extend the downside correction with the next target at $0.5, which coincides with 4-hour EMA100. This move will represent a 20% decline from the current price. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $0.38, the 4-hour EMA200.