XRP technical analysis

XRP price falls 15% in 3 days — Will Ripple’s legal setback mark the bottom?

October 5, 2024 Coin Telegraph

Is XRP price quietly setting up for a rally toward $1?

September 7, 2024 Coin Telegraph

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

November 26, 2023 Coin Telegraph

XRP may need to undergo a short selloff period before confirming the upside continuation setup as whales demonstrate bullishness.

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

XRP 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 was trading above its bull flag's upper trendline, albeit accompanying weaker volumes. That technically indicates a weaker conviction among traders about XRP's bullish continuation.

*XRP/USD daily price chart. Source: TradingView*

The duration of traders' indecisiveness could have XRP 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's downside target on the weekly timeframe chart.

XRP 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 accumulation

XRP'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 tokens over the past week.

#Ripple | On-chain data shows that #XRP whales have purchased around 11 million $XRP 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 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'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 sales to institutional investors broke U.S. securities laws.

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.

XRP price faces Q4 rout and 20% drop

November 23, 2023 Coin Telegraph

bitcoin etf

XRP has entered a strong correction cycle after testing a multi-year resistance trendline. Is the bull market on pause for now?

XRP (XRP) price has dropped 18.5% from its local high of $0.67 on Nov. 23. And, it appears the cryptocurrency will suffer more selloffs in the coming weeks.

XRP technicals hint at extended correction

XRP has failed to break above a descending trendline resistance since January 2018. And, it fell short of logging a breakout above in November 2023, as well, illustrating a psychological selling pressure around the line.

*XRP/USD weekly price chart. Source: TradingView*

Each bearish rejection after testing the descending trendline resistance has historically resulted in a decline toward the ascending support trendline.

The downside target appears around $0.50, interestingly closer to XRP's 50-week (the red wave) and 200-week (the blue wave) exponential moving averages (EMA). Thus, XRP's price risks declining by 20% before 2024, if this fractal plays out.

Potential XRP transfers to exchanges

XRP's bearish outlook picks more cues from the supply distribution data tracked its richest cohorts.

Notably, the XRP supply held by addresses with a balance between 1 billion and infinity tokens (the black wave) has risen 1.75% since Nov. 20.

A huge chunk of these addresses may belong to crypto exchanges, indicating that investors have been moving their XRP holdings to trading platforms for selling.

*XRP supply distribution. Source: Santiment*

Historical data shows that the spikes in the 1 billion-infinity XRP token cohort precede both modest and huge price declines (the red wave). Conversely, a recent decline in the cohort's supply, indicating exchange outflows, preceded XRP's price rally from $0.55 to up to $0.68.

In addition, XRP fund data show de-risking behavior among institutional investors. In November, XRP-related investment vehicles witnessed outflows worth $2.6 million, according to CoinShares.

*Net flows across cryptocurrency-focused investment funds. Source: CoinShares*

Interestingly, other cryptocurrencies experienced inflows in the same period, with Bitcoin leading the chart.

Is the XRP bull run over?

XRP price has soared in 2023, generating 80% returns for its investors as of Nov. 23. Its partial legal win against the U.S. Securities and Exchange Commission and the Spot Bitcoin ETF euphoria have contributed the most to its yearly gains.

Related: Why is XRP price up today?

As a result, the ongoing XRP price decline appears like a bull market correction. In other words, some investors are selling XRP near its local price tops to secure profits. In other words, XRP's overall uptrend is still intact.

Trade analysts anticipate XRP to resume its bull trend, with Muro saying that it would rise to $0.80 next, up 30% from current price levels.

$XRP

Just like ETH and SOL, broke out, ready to go, with or without retest of the consolidation low pic.twitter.com/92pIeOZZP7
— Muro (@MuroCrypto) November 23, 2023

CryptoBull expects XRP to reach $4.20 in 2024, citing the cryptocurrency's past breakouts after months of consolidation inside triangle patterns.