XRP Price May Shoot Up Over 20% Due to Bullish Continuation Pattern

The coming weeks are a particularly exciting time for XRP (XRP) given that a bullish continuation setup known as the ‘bull flag’ pattern might push its price up by more than 20%.

Understanding The Bull Flag Breakout Stage

The bull flag pattern occurs when the price of a particular cryptocurrency consolidates inside a parallel channel after a significant uptrend. The pattern culminates when the price convincingly breaks above the upper trendline and continues to spike – mirroring the previous uptrend’s height.

As at November 26, XRP was trading above its bull flag’s upper trendline, albeit with weaker volumes suggesting a less confident consensus among traders about its bullish rally.

Predicting XRP’s Price Movement

Given the indecisiveness among traders, the price of XRP could test the flag’s upper trendline as support, potentially resulting in a decrease to $0.59 by November. This is concurrent with a historical support level and the 50-day exponential moving average (50-day EMA).

If the bull flag scenario continues in December, it could push XRP’s price to $0.75, a more than 20% increase from current levels. That said, a fall below the flag’s upper trendline might delay this bullish march, pushing the lower trendline near $0.54 – which aligns with the 200-day EMA.

XRP On-Chain Data: Signs of Accumulation

Current on-chain data for XRP also skews towards bullish tendencies as the richest addresses are showing strong patterns of accumulation. During the recent currency correction period, there was a reported increase in supply among addresses with a balance of between 100,000 and 10 million tokens.

In essence, these ‘whales’ have purchased approximately $6.82 million worth of XRP tokens within just a week, signaling their belief in an imminent price rise matching the bull flag setup outlined above.

Uncertainty Persists Over Ripple vs. SEC Case

So far in 2023, XRP’s price has risen almost 85%, largely due to Ripple’s partial victory against the United States Securities and Exchange Commission (SEC). However, the court still has to decide whether Ripple’s XRP sales to institutional investors violated U.S. securities laws. This decision is eagerly awaited and could have a significant impact on XRP’s future price.

It’s currently understood that the trial between Ripple and the SEC will resume in April 2024 with a strong likelihood of a settlement. Any settlement below $20 million – according to crypto attorney John Deaton, – would be seen as a near-total victory for Ripple.

Before making any investment or trading move, readers are reminded to conduct their own careful research given the potential risks involved.