XRP (XRP) price could rise by more than 20% in the coming weeks thanks to a classic bullish continuation setup.
XRP Price Enters Bull Flag Breakout Phase
When prices consolidate within a parallel channel after a strong uptrend, a so-called bull flag pattern forms. It resolves when price breaks above the upper trendline on convincing volume and rises to the heights of the previous uptrend.
As of November 26, XRP was trading above the upper trendline of its bull flag, albeit on weaker trading volume. Technically, this indicates that traders are less confident that XRP will continue to be bullish.
The duration of trader indecision could see XRP price test the flag’s upper trendline as support. This means that by November, the price will drop to $0.59, in line with historical support and the 50-day exponential moving average (50-day EMA; red wave).
This level is also located near the downside target for XRP on the weekly time frame chart.
If the bull flag scenario holds true and is characterized by a sharp rebound from the upper trendline, XRP could climb to $0.75 in December, a gain of more than 20% from current price levels.
Conversely, a break below the flag’s upper trendline would delay a bullish continuation setup, bringing the lower trendline closer to $0.54, coinciding with the 200-day EMA (blue wave) as the next downside target.
On-chain data shows XRP accumulation
XRP’s on-chain data looks bullish due to strong accumulation among its richest addresses.
Notably, the cryptocurrency’s adjustment period coincides with an increase in supply among addresses with balances between 100,000 and 10 million coins. In total, these so-called “whales” purchased $6.82 million worth of XRP tokens over the past week.
#ripple | Data display on the chain #ripplecoin Whales have purchased around 11 million of them $ripple In the past week, it was worth approximately $6.82 million! pic.twitter.com/VnWpaMoOYR
— Ali (@ali_charts) November 25, 2023
In other words, these whales bought XRP at possible local lows, signaling their belief in a price increase in December, which corresponds to the bull flag setup described above.
SEC vs. Ripple ruling looms
The price of XRP has surged nearly 85% so far in 2023, with Ripple partially beating out the U.S. Securities and Exchange Commission (SEC) as a major bullish catalyst. However, the court must still decide whether Ripple violated U.S. securities laws by selling XRP to institutional investors.
RELATED: Ripple lawyer urges fact-checking of Gary Gensler’s speech, says SEC actions deemed ‘suspicious’
The trial between Ripple and the SEC will reportedly resume on April 23, 2024, to be chaired by legal experts The likelihood of seeing reconciliation is high. Cryptocurrency lawyer John Deaton said any settlement below $20 million would be a 99.99% win for Ripple.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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