The XRP price bull flag hints at a 20% New Year rally
The price of XRP (XRP) may increase by more than 20% in the coming weeks.
XRP price has entered a bull flag breakout level.
A pattern called a bull flag is formed when the price consolidates in a parallel channel after a strong reversal. After rallying from the upper trend, the price resolves with convincing volumes and increases as much as the previous high.
In the year Since November 26, XRP has been trading above the bullish flag's upper trendline, albeit with weak volumes. That technically indicates weak confidence among traders about XRP's bullish continuation.
The duration of traders' determination is that XRP price may test the flag high trend line as support. This means a decline to $0.59 in November, along with historical support levels and the 50-day exponential moving average (50-day EMA, red wave).
This level is also around XRP's lower target on the weekly time chart.
XRP could rise to $0.75 in December, which is more than 20% higher than the current price level, if the bull flag situation holds and a significant retracement from the upper trend line is recognized.
Conversely, a break below the upper line of the flag will delay the next bullish configuration, bringing the lower trendline to $0.54, coinciding with the 200-day EMA (the blue wave) as the next bearish target play.
The information on the chain shows the XRP stock
XRP's on-chain data seems to be leaning towards the bulls.
In particular, the period of correction of the cryptocurrency is connected with the increase in the supply between addresses with a scale between 100,000 and 10 million tokens. In total, these so-called “whales” bought $6.82 million worth of XRP tokens last week.
#Ripple | On-chain data shows that #XRP whales bought about $11 million worth of XRP last week, roughly $6.82 million! pic.twitter.com/VnWpaMoOYR
— Ali (@ali_charts) November 25, 2023
In other words, these whales are buying XRP at possible local lows, indicating their belief in a price rally in December, which corresponds to the bull flag setup above.
SEC vs. A Ripple decision is looming.
XRP's price is up nearly 85% by 2023, with Ripple's victory over the US Securities and Exchange Commission (SEC) serving as a major bullish catalyst. However, the court still has to decide whether Ripple's sale of XRP to institutional investors violated US securities laws.
Related: Ripple's lawyer urges fact-checking of Gary Gensler's speech, says SEC actions seen as ‘shady'
The lawsuit between Ripple and the SEC in 2016 Reportedly set to continue on April 23, 2024, lawyers are eyeing the possibility of a substantial settlement. John Deaton, a crypto attorney, says that a deal under $20 million is a 99.99% win for Ripple.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
