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XRP Anticipates 20% Rally Amid Bullish Continuation Signals

Crypto XRP, the digital currency, is poised for a potential surge of over 20% in the coming weeks, as indicated by a classic bullish continuation setup. This bullish scenario is marked by the development of a bull flag pattern, a formation observed when the price consolidates within a parallel channel following a robust uptrend. The
XRP, the digital currency, is poised for a potential surge of over 20% in the coming weeks, as indicated by a classic bullish continuation setup. This bullish scenario is marked by the development of a bull flag pattern, a formation observed when the price consolidates within a parallel channel following a robust uptrend. The pattern typically concludes with a breakout above the upper trendline, accompanied by significant volumes, resulting in a price increase equivalent to the prior uptrend’s height.

As of November 26, XRP was observed trading above the upper trendline of the bull flag, although with somewhat weaker volumes. This suggests a degree of uncertainty among traders regarding the strength of XRP’s bullish trend continuation. The possibility exists for a test of the flag’s upper trendline as support, potentially leading to a decline towards $0.59 by November. This level aligns with a historical support level and the 50-day exponential moving average (50-day EMA), providing additional technical significance.

XRP/USD daily price chart. Source: TradingView

However, this potential sell-off could set the stage for a subsequent climb in XRP towards $0.75 in December, representing a gain of over 20% from current levels. The bullish continuation scenario relies on a high-volume rebound from the upper trendline.

On-chain data for XRP reveals a positive tilt toward bulls, attributed to substantial accumulation among the coin’s wealthiest addresses. Addresses holding between 100,000 and 10 million XRP tokens, often referred to as “whales,” have collectively purchased $6.82 million worth of XRP over the past week. This suggests strong confidence among these influential holders in an upcoming price rise, aligning with the anticipated bull flag setup.

It’s crucial to note that XRP’s price surge in 2023, totaling almost 85%, has been primarily fueled by Ripple’s partial victory against the United States Securities and Exchange Commission (SEC). However, uncertainty looms as the court must determine whether Ripple’s XRP sales to institutional investors violated U.S. securities laws. The trial is scheduled to resume on April 23, 2024, with legal experts expressing optimism about a potential settlement. Notably, a settlement below $20 million is perceived as a 99.99% win for Ripple.

Wasif Shakir

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