XRP Price Set to Rally Over 20% with Bull Flag Breakout
The price of XRP (XRP) is poised to rally over 20% in the coming weeks, thanks to a classic bullish continuation setup known as a bull flag breakout.
XRP Price Enters Bull Flag Breakout Stage
The bull flag pattern occurs when the price consolidates within a parallel channel after a strong uptrend. The pattern resolves when the price breaks above the upper trendline with significant volume and rises by a height similar to the previous uptrend.
Currently, XRP is trading above the upper trendline of its bull flag, although with weaker volumes. This suggests that traders are less confident about XRP’s bullish continuation.
If traders remain indecisive, XRP’s price may test the flag’s upper trendline as support, potentially leading to a decline towards $0.59 by November. This level coincides with a historical support level and the 50-day exponential moving average.
If the bull flag scenario holds, XRP could climb towards $0.75 in December, representing a gain of over 20% from current levels. This would require a high-volume rebound from the upper trendline.
On the other hand, breaking below the flag’s upper trendline would delay the bullish continuation setup and bring the lower trendline near $0.54 into play as the next downside target.
On-Chain Data Shows XRP Accumulation
The on-chain data for XRP indicates strong accumulation among its wealthiest addresses, suggesting a bullish sentiment among investors.
Addresses holding between 100,000 and 10 million XRP tokens, known as “whales,” have purchased approximately $6.82 million worth of XRP over the past week.
This accumulation by whales at local lows indicates their conviction about a price rise in December, aligning with the bull flag setup.
SEC vs. Ripple Decision Looms
XRP’s price has experienced an 85% increase in 2023, primarily driven by Ripple’s partial win against the U.S. Securities and Exchange Commission (SEC).
However, the court still needs to decide whether Ripple’s XRP sales to institutional investors violated U.S. securities laws.
The trial between Ripple and the SEC is set to resume on April 23, 2024, and legal experts anticipate a high likelihood of a settlement. A crypto attorney named John Deaton believes that any settlement below $20 million would be a significant victory for Ripple.
Hot Take: XRP Primed for Bullish Rally
XRP’s bull flag breakout pattern, combined with strong on-chain accumulation and the pending SEC vs. Ripple decision, sets the stage for a potential bullish rally in the coming weeks. While traders’ conviction may currently be weaker due to lower volumes, a rebound from the upper trendline could drive XRP’s price towards $0.75 by December, representing a gain of over 20%. However, breaking below the flag’s upper trendline would delay this bullish scenario and introduce a lower downside target near $0.54. The outcome of the SEC case against Ripple will also play a significant role in shaping XRP’s future trajectory.
Coinan Porter stands as a notable crypto analyst, accomplished researcher, and adept editor, carving a significant niche in the realm of cryptocurrency. As a skilled crypto analyst and researcher, Coinan’s insights delve deep into the intricacies of digital assets, resonating with a wide audience. His analytical prowess is complemented by his editorial finesse, allowing him to transform complex crypto information into digestible formats.