XRP Price Forms Bullish Pennant After 51% Rally, Targets $2
XRP price consolidated near $1.48 on Aug. 25 after a sharp 51.5% gain over seven days, following a peak around $1.69. On the 4-hour chart, XRP price is forming a bullish pennant (symmetrical triangle) as buyers compress price between converging trendlines. Traders are watching resistance at $1.56; a confirmed break above could open the way toward $1.66, $1.76, and $1.86. The measured-move estimate implies a theoretical target slightly above $2 if the breakout begins near ~$1.50.
Fundamentals and flows supported the rally. Optimism around US crypto regulation increased after President Donald Trump hosted industry leaders including Ripple CEO Brad Garlinghouse to push the CLARITY Act, aiming to split digital-asset oversight between the SEC and the CFTC. Macro conditions also helped as Treasury yields eased. XRP also saw reported $18M daily inflows into US spot XRP ETFs during the rally.
Momentum signals are mixed. The 4-hour RSI is 58.73 (cooling from overbought), and MACD has turned cautious with a bearish crossover. However, Chaikin Money Flow remains positive, and daily money flow is still constructive. Network activity rose sharply: active addresses reportedly jumped 654.71% (Santiment data). Liquidation data shows dense leverage near $1.54–$1.56 (potential upside fuel) and downside liquidity around $1.42–$1.45.
Bull case: a high-volume close above $1.56, then a successful retest as support, keeps the pennant continuation intact. Bear risk: losing $1.46 raises odds of a deeper pullback; a sustained break under $1.3672 would weaken the bullish chart setup.
Bullish
The article frames XRP as being in a constructive post-rally consolidation: a bullish pennant on the 4-hour chart with clear upside triggers near $1.56. This matters for traders because, historically, pennant/flag breakouts often continue the prior trend if buyers can close above resistance with rising volume. The setup is also supported by the catalyst mix (regulation optimism around the CLARITY Act, easier macro yields, and reported inflows to US spot XRP ETFs), which typically increases sustained demand rather than one-off momentum.
At the same time, the piece flags short-term cooling signals (RSI off highs and a bearish MACD crossover). That suggests rallies may remain volatile and could require a retest before continuation. Liquidation clustering adds nuance: heavy leverage near $1.54–$1.56 can amplify upside if longs are forced higher, while downside liquidity at $1.42–$1.45 can cause sharper pullbacks if the breakout fails. A failure to reclaim/hold $1.56 and a sustained drop below key support like $1.46 and $1.3672 would shift the trade from “continuation” to “correction.” Overall, the balance of chart structure + demand catalysts outweighs the short-term momentum softness, so the expected impact is bullish for the next move, with key invalidation levels for risk management.