Ripple's XRP is currently trading in the green zone as the price continues to move within a triangular pattern, indicating market indecision. It's difficult to predict whether this pattern will break upward or downward, but such consolidations are often precursors to significant movements in either direction. Currently, the price remains within a defined range, as the market attempts to determine its next move.

A sideways trend may seem boring, but it is a healthy market behavior that allows prices to gather strength before moving up. As long as XRP stays above key support levels, especially the $2.04 price level, the bullish trend will remain intact. Breaking out of this consolidation phase could allow XRP to test higher levels, with $3 potentially being the next resistance level, and it could even set a new all-time high.

XRP's bullish flag is unfolding!

The bullish flag pattern is a reliable continuation signal in technical analysis, indicating further upside potential. For XRP, this pattern has garnered attention as it suggests the cryptocurrency may be gearing up for the next upswing.

XRP's price initially skyrockets, forming a 'flagpole' driven by strong positive momentum and high trading volume. This is followed by a consolidation phase, where the price fluctuates within a narrow range, typically moving downward or sideways. This consolidation represents a temporary pause in the upward trend, allowing the market to digest the gains. It shows resilience, indicating that selling pressure is manageable, and the bullish trend may resume.

Flag pattern ignites XRP's upward movement | Source: XRPUSDT on Tradingview.com

Furthermore, when the price breaks above the upper boundary of the flag and resumes its previous upward trajectory, this pattern is validated. This breakout would indicate rekindled buying interest and the potential to test higher price levels.

Key indicators to watch include an increase in trading volume during the breakout, as this confirms market participation and bullish sentiment. Additionally, XRP must maintain its momentum above resistance levels to avoid the risk of a false breakout.

XRP still has a glimmer of hope

Unlike other top altcoins whose gains disappeared after the election, XRP still has a large number of profit-seeking investors. Recently breaking through two key levels keeps FOMO alive. However, if the bearish trend continues and XRP falls below the critical $2 threshold, panic could spread. Concerns about further losses may trigger a wave of selling, plunging XRP into a more severe decline.

On the daily chart, XRP soared to $2.80 after the election, clearly showing signs of an overheated market. With a series of green long candles illuminating the chart over the past few weeks, profit-taking is just a matter of time.

Currently, XRP is caught in a high-stakes tug-of-war—whales are trying to stabilize the price while sellers hope to cash out. Interestingly, this tension may lay the groundwork for future bullish trends.

Zooming in on the 12-hour chart, we can see strong liquidity at $2.18, where seemingly 1.75 million leveraged positions are at play. If XRP can maintain this level, it may trigger a rebound, creating a perfect storm for a short squeeze.

For savvy investors looking for 'buy the dip' opportunities, this is undoubtedly a rare chance, especially during BTC's consolidation. If XRP maintains its strength, it could take the lead, providing potential for a strong rebound in the future.

Therefore, for those looking to invest in altcoins while the market continues to fluctuate, this could be a good time.