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Highlights
- The price breakout or breakdown from the pennant pattern could signal the near-term move for XRP.
- A bullish crossover between the 50D and 100D EMA could accelerate the market buying.
- The intraday trading volume in the XRP is $928 Million, indicating a 46% loss.
For over a week, the XRP price analysis showcased a sluggish trend struggling to breach $0.64 resistance. This period of consolidation may be linked to market participants holding out for the expected settlement between Ripple and the U.S. Securities and Exchange Commission. Although there are no significant developments in the legal proceedings over weekends, a notable trend in whale activity suggests a potential upcoming rally. Here’s an explanation of how the price action forms a supportive bullish pattern.
Also Read: XRP Lawyer John Deaton Attends Bitcoin Conference, Gains Maxis Support
XRP Price Analysis: Pennant Pattern Signals Impending Breakout
Amid the July market recovery, XRP emerged as one of the top performers, surprising many. The daily chart captured a swift turnaround, with the price escalating from $0.38 to a peak of $0.63—a remarkable 66% increase.
While this rally was partly driven by the broader market’s recovery, it was also fueled by the nearing conclusion of the Ripple vs. SEC lawsuit, marked by anticipated settlements. However, after a delay in the conclusive meeting, XRP’s price has been trading sideways since July 18th.
The short-body candles with long wicks show no initiation from buyers or sellers in the daily charts. However, a deeper analysis of the 4-hour chart showed the XRP price resonating between two trendlines to form a pennant pattern.
This chart setup is commonly spotted in established uptrends allowing buyers to recuperate before the next leap. The recent jump above daily EMAs (20, 50, 100, and 200) hints at an early sign of trend reversal.
With an intraday gain loss of 0.33%, the XRP price currently trades at $0.6, while the market cap holds at $33.6 Billion.
A potential breakout from the overhead trendline will signal the uptrend continuation, and bolster buyers to escape the long accumulation led by a triangle pattern since September 2021.
If the pattern holds true, the post-breakout rally could target $0.92, followed by $1.41.
Also Read: Peter Schiff Blasts RFK Jr’s Bitcoin Buy Plan As ‘Vote-Buying’ Strategy
Additionally, data from CryptoQuant indicates a downward trend in the Whale to Exchange Flow on the XRP ledger. This decrease could imply that large investors are choosing to retain their holdings, potentially in expectation of future price gains or because of unsatisfactory selling conditions.
Such holding behavior by whales is often interpreted as a sign of their confidence in the long-term value of the asset.
On a contrary note, if the XRP price witnessed renewed supply pressure at triangle resistance at $0.64, the sellers could attempt another reversal.
Frequently Asked Questions (FAQs)
1. How does the Whale to Exchange Flow metric impact XRP's price?
2. What is the Ripple's CEO view about the potential settlement with the SEC
3. What can bolster XRP price rally to $1?
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