XRP Bull Flag Pattern Hints at Upcoming Breakout

XRP is capturing renewed investor attention as analysts highlight a bull flag pattern, a key technical indicator suggesting a powerful breakout may be on the horizon.

Market observer Dark Defender has called attention to XRP’s long-standing habit of forming bull flags, which historically have preceded dramatic price surges. According to him, the ripple token’s price movements since 2015 are building momentum for a major rally that could eclipse previous highs.

Between May 21 and May 27, 2025, XRP’s price exhibited narrow-range trading, fluctuating from approximately $2.33 to a week-high nearing $2.47. A sharp drop mid-week saw the token fall from just under $2.45 to around $2.30. Despite this decline, XRP tried to recover and ended the week at $2.31—showing ongoing market volatility as the asset moves through a broader consolidation phase.

Technical Setup Suggests Momentum Building

In a recent analysis, Dark Defender underlined the technical structure taking shape on XRP’s price chart. This formation—a bull flag—consists of a steep rise followed by a sideways or downward sloping consolidation pattern. Once the pattern resolves, it typically signals the continuation of the preceding bullish trend.

This technical configuration is not new for XRP. In 2017, the digital asset consolidated around $0.0054 before shooting up past $0.2. This upward movement completed the bull flag, and XRP eventually surged to its all-time high of $3.5 by January 2018. The ensuing two-year period of consolidation further validated the pattern’s presence at that time.

Fast forward to recent months, a similar structure appears to be developing. XRP climbed rapidly from under $0.60 to a peak of $3.3 in January 2025, setting up a new flagpole. Since then, the token has entered a prolonged phase of sideways movement, forming the flag portion of the pattern. This suggests XRP may once again be preparing for a significant bullish move—as yet unrealized but heavily anticipated.

According to Defender’s view, XRP has yet to reach its full market potential. The current chart setup implies a build-up in trading pressure, which often leads to substantial upward motion when it breaks free.

Supporting Signals from Analyst Poseidon

Another analyst, Poseidon, has also weighed in on XRP’s consolidation phase, offering insights into various supportive signals pointing to a possible breakout. In a recent breakdown of XRP’s technical behavior, Poseidon explained that the cryptocurrency has largely traded within the $2 to $3 range. According to his research, the $3 mark has acted as upper resistance while $2 has consistently functioned as a strong support layer.

In several instances, XRP has breached these boundaries briefly, only to reverse back into the range. This behavior suggests that while traders are testing these levels, the broader pattern remains intact.

Poseidon outlined three technical developments strengthening the bullish thesis:

• A failed downside breakout that bounced back above support
• Reclaiming the 200 Exponential Moving Average (EMA) on the 12-hour timeframe
• A newly formed higher high of $2.36 recorded on May 26, signaling an uptrend

Adding to these indicators is a descending trendline stemming from XRP’s May 12 peak at $2.6. The trendline has so far limited upward movement. Poseidon argues that a confirmed breakout requires XRP to breach the $2.4 threshold, which would invalidate the current downtrend resistance.

If this breakout occurs as expected, the projected target stands at $4—representing roughly a 73% jump from the current $2.31 valuation. Poseidon’s analysis supports the notion that technical signals are aligning in XRP’s favor, indicating that a major move could be imminent.

Related: Expert Advice: Sell XRP If You’re Confused

As both long-term historical patterns and recent technical markers converge, XRP appears to be entering a pivotal moment. Investors and traders alike are watching closely for signs of the anticipated bullish breakout. If history is any guide, this could signal a new wave of interest and potential upside for Ripple’s native token.