TLDR:
- XRP price forming potentially large bull flag pattern
- Analyst predicts possible rise to $16 based on Fibonacci extension
- Ripple vs SEC lawsuit nearing conclusion, could boost XRP price
- XRP currently trading sideways below $0.66 resistance level
- Ripple launching new RLUSD stablecoin on XRP Ledger and Ethereum
The price of XRP, the native cryptocurrency of the Ripple network, has been consolidating in recent weeks as analysts debate the asset’s potential for a significant breakout.
Currently trading around $0.60, XRP remains below key resistance at $0.66 despite strength in the broader crypto market.
Some technical analysts have identified what they believe could be a massive bull flag pattern forming on XRP’s long-term chart. According to the 3T Warrior Trading Academy, this bullish formation has been developing since 2017 and could potentially lead to major price appreciation if it plays out.
🚨 Is $XRP Forming The Largest Bull Flag In Crypto History?💥 — THE DATA IS IN !!📈
Remember when #XRP soared 60,000% in 240 days, going from $0.006 to $3.84? $XRP has been trading Below All Time High ($3.84) for 2,424 days & counting!⏳
A 4.236 Fibonacci extension takes us… pic.twitter.com/pjFA3Rq8I0
— Good Morning Crypto (@AbsGMCrypto) August 24, 2024
The analyst points to XRP’s previous price action in 2017, when it surged 60,000% from $0.006 to $3.84 at its peak.
While a move of that magnitude is unlikely given XRP’s current market capitalization, the analyst suggests a Fibonacci extension to the 4.236 level could take XRP’s price to $16 – representing a 2,566% increase from current levels.
However, XRP has struggled to gain momentum in recent months, lagging behind as market leaders Bitcoin and Ethereum have broken to new local highs. XRP remains capped below the $0.66 resistance level that has proven difficult to overcome.
Trading volume for XRP has been relatively muted, averaging around $810 million daily.
Many traders appear to be taking a wait-and-see approach, looking for a high-volume breakout above $0.66 to confirm a new uptrend. Until then, XRP may continue to trade sideways in its current range.
One factor that could catalyze a move in XRP is the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission.
The case, which has weighed on XRP’s price for years, appears to be nearing its conclusion. Ripple CEO Brad Garlinghouse has stated he expects a resolution sometime in 2024.
A favorable outcome for Ripple could remove a major overhang for XRP and potentially spark renewed interest from investors and exchanges.
However, the SEC has appealed a recent court order for Ripple to pay $125 million, extending the legal battle.
Meanwhile, Ripple continues to expand its business operations. The company recently announced it is minting a new USD-pegged stablecoin called RLUSD on both the XRP Ledger and Ethereum blockchain. The stablecoin will be backed by U.S. dollar deposits, treasuries and other liquid cash equivalents.
From a technical perspective, XRP is trading above its 20-day and 50-day exponential moving averages, typically a bullish signal. However, the cryptocurrency needs to decisively break above $0.66 to attract more buyers and confirm a new uptrend.
Some analysts see parallels to previous XRP rallies, noting that the last time XRP traded around $0.60 in 2021, it went on to surge above $1.50 within two months.
A similar move from current levels would take XRP back toward its 2022 highs.
