XRP price bull flag hints at 20% rally by New Year’s

XRP ( $1.08 ) ( XRP ( $1.08 ) ) price may rally over 20% in the coming weeks thanks to a classic bullish continuation setup.

XRP ( $1.08 ) price enters bull flag breakout stage

The so-called bull flag pattern develops when the price consolidates inside a parallel channel after a strong uptrend. It resolves after the price breaks above the upper trendline with convincing volumes and rises by as much as the previous uptrend’s height.

As of Nov. 26, XRP ( $1.08 ) was trading above its bull flag’s upper trendline, albeit accompanying weaker volumes. That technically indicates a weaker conviction among traders about XRP ( $1.08 ) ’s bullish continuation. 

The duration of traders’ indecisiveness could have XRP ( $1.08 ) price test the flag’s upper trendline as support. That means a decline toward $0.59, coinciding with a historical support level and the 50-day exponential moving average (50-day EMA; the red wave), by November.

This level is also around XRP ( $1.08 ) ’s downside target on the weekly timeframe chart.  

XRP ( $1.08 ) may then climb toward $0.75 in December, up over 20% from current price levels, if the bull flag scenario holds, and is characterized by a high-volume rebound from the upper trendline.

Conversely, breaking below the flag’s upper trendline would delay the bullish continuation setup, bringing the lower trendline near $0.54, coinciding with the 200-day EMA (the blue wave), into play as the next downside target.

On-chain data shows XRP ( $1.08 ) accumulation

XRP ( $1.08 ) ’s on-chain data looks tilted toward bulls thanks to strong accumulation among its richest addresses.

Notably, the cryptocurrency’s correction period has coincided with an increase in its supply among addresses with a balance between 100,000 and 10 million tokens. In total, these so-called “whales” have purchased $6.82 million worth of XRP ( $1.08 ) tokens over the past week.

#Ripple | On-chain data shows that $1.08 ) ?src=hash&ref_src=twsrc%5Etfw"># XRP ( $1.08 ) whales have purchased around 11 million $1.08 ) &src=ctag&ref_src=twsrc%5Etfw">$ XRP ( $1.08 ) over the past week, worth roughly $6.82 million! pic.twitter.com/VnWpaMoOYR

— Ali (@ali_charts) November 25, 2023

In other words, these whales are buying XRP ( $1.08 ) at the likely local lows, indicating their conviction about a price rise in December, which corresponds with the bull flag setup presented above.

SEC vs. Ripple decision looms

XRP ( $1.08 ) ’s price has soared nearly 85% so far in 2023, with Ripple’s partial win against the U.S. Securities and Exchange Commission (SEC) serving as the primary bullish catalyst. However, the court must still decide whether Ripple’s XRP ( $1.08 ) sales to institutional investors broke U.S. securities laws. 

Related: Ripple lawyer urges fact-check of Gary Gensler’s speech, says SEC actions seen as ‘shady’

The trial between Ripple and the SEC will reportedly resume on April 23, 2024, with legal experts seeing a huge likelihood of a settlement. John Deaton, a crypto attorney, notes that any settlement below $20 million will be a 99.99% win for Ripple.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.