XRP price chases $2 after bull flag breakout leads to new 2024 highs

XRP ( XRP ) rallied to a new year-to-date high at $1.68 after the altcoin continued to form a higher high (HH) pattern. The crypto asset is up 40% this week, and it may potentially flip BNB to become the fifth-largest cryptocurrency in the market.

XRP 4-hour chart. Source: Cointelegraph/TradingView

XRP active accounts rise 100% in November

While XRP price has increased 232% over the past 30 days, its onchain metrics also demonstrate a positive resurgence. Data from xrpscan, highlighted that the number of active accounts or unique senders on the XRP network increased from 15,592 on Nov. 1 to as high as 47,044 on Nov. 16.

Number of active accounts on XRP ledger. Source: xrpscan

The overall average of active accounts doubled in November, rising from around 12,000 to 25,000 this month. Similarly, the number of new accounts activated on the XRP ledger registered a significant spike in November, inferring the influx of new users on the network.

The bullish sentiment around XRP has also picked up from Ripple’s strategic partnership with Archax to launch a tokenized money market fund on the XRP ledger.

Additionally, Bitwise, a crypto index fund manager, announced on Nov. 7 that it would rebrand its European XRP ETP, giving European investors XRP exposure through a physically backed product.

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XRP eyes $2 but overbought conditions point to “distribution”

XRP’s recent breakout occurred after the price exhibited a bullish breakout from a bull flag pattern. A new higher high formed indicates a bullish continuation in the chart, which opens the possibility of further upside.

XRP 4-hour chart. Source: TradingView

Based on the Fibonacci extension rule from its trend swing low at $1, XRP's immediate target lies between $1.95 and $2.05, comprising its previous bull-runs market top at $1.97, which will act as overhead resistance.

Mikybull, an independent crypto analyst, also mentioned the possibility of a $2 target and said,

“$XRP 2017 kind of rally vibes. Hit $2, experience a pullback, and then continue its vertical hated rallies to a new cycle top of probably $10.”

However, it is important to note that its mid-term and long-term charts illustrate clear bearish divergences.

XRP 1-day chart. Source: TradingView

Another important analysis is that price and trading volume have illustrated inverse correlation since Nov. 16. It indicates that XRP is experiencing a distribution phase, where the market traders are potentially looking to sell.

Thus, the probability of a bearish market reversal increases, considering that trading volumes over the past three days were the lowest since Nov. 10.

Related: Is XRP price going to crash again?