XRP (XRP) has kickstarted 2025 in positive territory, rising over 5% year-to-date to reach $2.46 on Jan. 7. The cryptocurrency could keep climbing further, with technical outlooks suggesting the same.
Bull flag setup could result in XRP price rising 70%
XRP’s price has been forming a textbook bull flag pattern on the daily chart, characterized by a downward-sloping channel, signaling a temporary pause in the bullish momentum after its 105% increase in November and December.
XRP is now trading near $2.42, testing the pattern’s upper boundary. A breakout above this level could confirm the bull flag and pave the way for further upside toward the level at a length equal to the previous uptrend’s height.
XRP/USD daily price chart. Source: TradingView
This projection points to a move toward $4.17, indicating a possible 72% rally by February from current levels.
Technical indicators support the bullish thesis. XRP’s relative strength index (RSI) sits near 60, suggesting sufficient room for upward momentum.
Meanwhile, the price remains above its 50-day exponential moving average (50-day EMA; the red wave) around $2.03, reinforcing the case for a breakout as the EMA acts as a strong support level.
Similarly, another analyst, Mikybull, supports the bullish outlook for XRP, citing a similar bull flag formation. Based on Fibonacci extension levels, the analyst sees XRP immediately rallying toward $3.74 after confirming the breakout.
XRP’s half-mast flag signals 260% surge
Veteran trader Peter Brandt speculates that XRP’s market cap could rise to $500 billion, corresponding to a 262% price increase, setting a target of $6.40 per token.
At the core of Brandt’s bullish outlook is a half-mast flag. This pattern typically emerges as a consolidation phase in the middle of a strong trend, potentially resulting in either a bullish continuation or a bearish reversal.
XRP market cap weekly chart. Source: Peter Brandt
Brandt speculates that XRP’s market cap could rise to $500 billion if the flag plays out to the upside. He suggests the pattern should be completed within six weeks of its formation, warning that failure to do so could see it evolve into a less predictable structure.
As of Jan. 7, the half-mast flag had entered its sixth week of consolidation.
XRP OI jump raises 100% price rise potential
XRP’s bullish outlook is bolstered by a sharp rise in open interest (OI) — to $4.49 billion on Jan. 7 from $2.71 billion a day prior, according to CoinGlass data.
A rising OI indicates that traders are actively opening new positions, which, coupled with XRP’s positive funding rates, reflect a strong expectation of further upside in the cryptocurrency’s price.
XRP Futures open interest. Source: CoinGlass
Past instances reinforce this correlation. For example, between July 13 and July 14, 2023, XRP’s OI spiked by over 100%, which coincided with a 107% price surge.
Related: XRP price chart ‘bull flag’ targets $15 amid increasing open interest
Another notable example occurred from Nov. 29 to Dec. 3, 2024, when XRP’s OI rose by 76%. This increase was accompanied by a 100% price rally over the same period, further highlighting the connection between rising OI and explosive price movements.
If history repeats itself, this surge in OI could propel XRP by another 100%, reaching $4.90 by March.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
