XRP is holding near $1.48 after an impressive weekly rally that pushed the token up more than 50%. The sharp move has now shifted into a consolidation phase, with the 4-hour chart forming what appears to be a bullish pennant.
If buyers can push XRP decisively above the $1.56 resistance area, the pattern could open the door to another leg higher. Technical projections suggest $2 may eventually come into focus, although several resistance levels still stand in the way.
XRP Consolidates After a Strong Weekly Rally
XRP traded around $1.48 on Aug. 25 after starting the seven-day period near $1.00. During the rally, the token climbed as high as approximately $1.69 before sellers stepped in and took profits.
That leaves XRP roughly 12% below its weekly high, but still substantially above where it began the week.
The rally gained momentum as optimism around U.S. cryptocurrency regulation improved. President Donald Trump recently hosted crypto industry representatives, including Ripple CEO Brad Garlinghouse, at the White House and urged Congress to move forward with the CLARITY Act.
The proposed legislation is designed to establish clearer regulatory responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Broader market conditions also helped support XRP.
Long-term U.S. Treasury yields declined after Treasury Secretary Scott Bessent announced expanded long-dated Treasury buybacks. The 30-year Treasury yield fell from around 5.34% to approximately 5.19%.
Lower bond yields can increase investor appetite for higher-risk assets, including cryptocurrencies.
XRP also reportedly attracted around $18 million in daily inflows into U.S. spot exchange-traded funds during the rally, providing another potential source of buying demand.
XRP’s 4-Hour Chart Forms a Bullish Pennant
The most important technical development is appearing on XRP’s 4-hour chart.
After rapidly climbing from roughly $1.00 to $1.58, XRP entered a tighter consolidation pattern. Price is now moving between descending resistance and rising support, creating the converging structure commonly associated with a bullish pennant.
Bullish pennants usually appear after a strong upward move and can signal that buyers are temporarily pausing before attempting another breakout.
However, the pattern is not confirmed yet.
XRP needs to break above the pennant’s upper trendline and ideally close above resistance near $1.56 with stronger trading volume.
Without that confirmation, the current structure remains a potential continuation pattern rather than a guaranteed breakout.
Could the Bullish Pennant Send XRP Toward $2?
A traditional measured-move calculation gives bulls an ambitious target.
XRP’s initial rally from around $1.00 to approximately $1.58 created a flagpole of nearly $0.58.
Adding that distance to a possible breakout around $1.50 produces a theoretical target slightly above $2.
That does not mean XRP will automatically reach that level. Chart-pattern targets are projections rather than guarantees, and the token still has several resistance zones to overcome.
Crypto analyst Altcoin Sherpa also described XRP’s consolidation as constructive and suggested that $2 could become a target during the next major upward move.
For now, however, traders are likely to focus first on whether XRP can successfully break $1.56.
Momentum Is Cooling but Bulls Still Have an Edge
XRP’s technical indicators show that some of the extreme momentum from the initial rally is beginning to cool.
The 4-hour Relative Strength Index stood around 58.73 after previously reaching overbought levels.
An RSI above 50 generally indicates that bullish momentum remains present. At the same time, the decline from overbought territory suggests XRP is working through some of the excess created by its rapid price increase.
The MACD indicator is more cautious.
Its MACD line moved below the signal line, while the histogram fell to around negative 0.0156. This bearish crossover suggests short-term upward momentum has weakened during the consolidation.
However, daily capital flows remain positive.
The Chaikin Money Flow indicator registered approximately 0.08, indicating that buying pressure continued to exceed selling pressure despite XRP’s pullback from $1.69.
As long as CMF remains above zero, it suggests that capital is still entering the market overall.
XRP Network Activity Jumps Sharply
On-chain activity has also increased significantly.
According to data cited by analyst Ali Charts, the number of active XRP addresses increased from roughly 47,180 to 356,070.
That represents an increase of approximately 655%.
A sharp increase in active addresses can indicate stronger participation across the network and often appears during periods of increased market interest.
However, rising address activity alone does not indicate whether participants are buying or selling XRP, so it should not be treated as a standalone bullish signal.
Large holders have also reportedly been accumulating XRP.
Whale wallets were said to have purchased another 380 million XRP during the week. Continued whale accumulation could reduce the amount of XRP available on the market, although updated wallet and exchange-balance data would be needed to confirm whether that trend continued during the consolidation phase.
$1.56 Is the First Major Breakout Level
For XRP bulls, $1.56 remains the most important immediate resistance.
The daily chart places a significant Murrey Math resistance level at approximately $1.5625. This area also closely matches the upper boundary of the developing bullish pennant.
A convincing daily close above $1.56 would therefore provide two important technical signals at the same time: a break above resistance and confirmation of the pennant breakout.
If XRP clears that level, the next resistance sits around $1.66, close to the recent weekly high.
Beyond that, traders may watch approximately $1.76 and $1.86.
Only after XRP successfully moves through these resistance zones would the psychological $2 level become a more immediate target.
Liquidation Clusters Could Accelerate the Next Move
XRP’s derivatives market could also play an important role in determining the next short-term move.
The three-day liquidation heatmap shows a significant concentration of leveraged positions between approximately $1.54 and $1.56.
If XRP moves into this region and breaks higher, leveraged short positions could begin liquidating.
Those forced liquidations can create additional market buy orders, potentially accelerating an upside breakout above $1.56.
This makes the resistance zone particularly important because it combines technical resistance with concentrated derivatives liquidity.
However, there is also significant liquidity below the current price.
Large downside clusters appear between approximately $1.42 and $1.45, with another notable concentration close to $1.43.
If XRP begins falling toward this area, leveraged long positions could be liquidated and intensify the decline.
$1.46 Is an Important Short-Term Support
The lower boundary of XRP’s developing pennant currently provides support around $1.46.
As long as buyers continue defending this level, the bullish continuation pattern remains intact.
A breakdown below $1.46 would weaken the setup and increase the probability that XRP tests the liquidation clusters around $1.42–$1.45.
Below that area, the daily chart identifies approximately $1.3672 as the next major support.
Another important support sits near $1.2695.
A sustained decline below $1.3672 would significantly weaken the current bullish thesis and could indicate that XRP’s consolidation is developing into a broader market correction.
Is $2 the Next Target for XRP?
XRP’s overall structure remains constructive following its powerful 51% rally.
The bullish pennant suggests that the token may be preparing for another upward move, while positive capital flows and increased network activity continue to support the broader bullish outlook.
However, bulls still need confirmation.
A strong breakout and close above $1.56 would strengthen the continuation setup and put $1.66, $1.76, and $1.86 in focus before XRP can seriously challenge $2.
If the token successfully clears those resistance levels, the pennant’s measured move suggests that a price slightly above $2 is technically possible.
On the downside, losing $1.46 could shift momentum toward $1.42–$1.45, while a deeper break below $1.3672 would invalidate the current pennant structure.
For now, XRP remains caught between a potentially bullish continuation pattern and short-term consolidation, making $1.56 the key level to watch for the next major move.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial or investment advice.
