XRP (XRP) price could rise more than 20% in the coming weeks thanks to a classic bullish continuation setup.
XRP price has entered the bull flag breakout phase.
The so-called bull flag pattern occurs when price consolidates inside a parallel channel after a strong upward trend. A resolution occurs after the price breaks above the upper trendline on solid volume and rises by the height of the previous uptrend.
As of November 26, XRP is trading above the upper trendline of the bull flag despite declining volume. Technically, this indicates that traders’ confidence in XRP’s continued strength is weak.
A period of trader indecision could test the XRP price to support the upper trendline of the flag. This means that by November it will fall to $0.59, coinciding with historical support levels and the 50-day exponential moving average (50-day EMA, red wave).
This level is also similar to the downside target for XRP on the weekly chart.
If the bull flag scenario holds and features a massive bounce from the upper trendline, XRP could rise to $0.75 in December, more than 20% above the current price level.
Conversely, a downward breakout of the flag’s upper trendline would delay a bullish continuation setup, causing the lower trendline to coincide with the 200-day EMA (blue wave) near $0.54, acting as the next downside target.
On-chain data shows XRP accumulation.
XRP’s on-chain data is tilted towards the bulls due to strong accumulation among the richest addresses.
In particular, the correction period for cryptocurrencies coincides with an increase in supply among addresses with token balances between 100,000 and 10 million. In total, these so-called “whales” purchased $6.82 million worth of XRP tokens over the past week.
#ripple | On-chain data shows: #XRP About 11 million whales were purchased. $XRP It was worth about $6.82 million over the past week! pic.twitter.com/VnWpaMoOYR
— Ali (@ali_charts) November 25, 2023
In other words, these whales are buying XRP at local lows, indicating confidence in a December price rise, consistent with the bull flag setup presented above.
SEC vs. Ripple decision coming.
XRP’s price has surged nearly 85% so far in 2023, with Ripple’s partial victory over the U.S. Securities and Exchange Commission (SEC) acting as a major bullish catalyst. However, the court will have to decide whether Ripple’s sale of XRP to institutional investors violated U.S. securities laws.
RELATED: Ripple Lawyer Calls for Fact Checking of Gary Gensler’s Speech, Says SEC’s Action Considered ‘Shady’
The trial between Ripple and the SEC will reportedly resume on April 23, 2024 with legal experts present. I think there is a high possibility of agreement. Crypto lawyer John Deaton says a settlement under $20 million would be a 99.99% win for Ripple.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.