XRP Price Prediction: Bullish Flag Puts $2.10 in Focus
The XRP cryptocurrency has experienced a nearly 3% price increase in the past 24 hours, as the crypto market continues to consolidate following its late-August rally. Despite the challenging macroeconomic backdrop, sentiment remains positive, with the Crypto Fear and Greed Index currently sitting at 72, indicating that investors remain in Greed mode despite the latest pullback.
Net Inflows to XRP-Linked ETFs
Net inflows to exchange-traded funds (ETFs) linked to XRP have started the month at $13 million, resulting in a daily average of $3.3 million. A projection of these inflows gives an estimated monthly total of around $60 to $70 million, which would imply a 50%+ drop compared to the previous month. However, it is still too early to predict such a target, as the situation could change drastically depending on the comments made by the Chairman of the Federal Reserve, Kevin Warsh, following the central bank's interest rate decision on September 16th.
On-Chain Data Suggests Potential Trend Continuation
Active addresses within the XRP Ledger experienced a strong spike in late August but have been progressively retreating since then, as trading volumes and activity have gone back to normal levels. However, a crossover between the 7-day and 30-day moving average for this metric took place back then. In previous instances, this signal has anticipated strong price moves in both directions. Although this is not a directional signal, it could mark the beginning of a specific trend. Considering that we are coming out of a massive uptrend, we could expect the continuation of such a move following this spike in activity.
Bullish Flag Pattern Forms on the Daily Chart
The daily chart shows that XRP has formed a bullish flag pattern, a typical continuation setup that emerges after a strong price movement. The fact that the flag is inclined downwards indicates aggressive profit-taking by early buyers and scarce activity from late buyers, who should supposedly be taking advantage of this drop to position for the continuation of the rally. Nonetheless, this flag pattern could still result in the resumption of the previous uptrend if the price breaks the $1.50 area, which is the flag's highest point.
Potential Upside and Breakout Target
Our full projection for XRP based on the flag's pole size would be $2.10, implying a 48% upside potential for the token for the next few weeks. This is contingent on the price breaking out of the bullish flag pattern and continuing the previous uptrend. The breakout target of $1.80 is still within reach, and a successful breakout could lead to the resumption of the rally.
What to Watch Next
The situation could change drastically depending on the comments made by the Chairman of the Federal Reserve, Kevin Warsh, following the central bank's interest rate decision on September 16th. Investors will be closely watching the market's reaction to this event, as it could have a significant impact on the price of XRP. Additionally, the Crypto Fear and Greed Index will continue to be monitored, as it provides insight into investor sentiment and could influence the market's direction.
