• XRP price is forming a cup-and-handle pattern on a weekly time frame, hinting at a bullish breakout to $15.
  • The RSI and MACD also present supporting evidence for the highly optimistic outlook.
  • If Ripple wins its long-standing lawsuit with the SEC, it will set an example of how cryptocurrencies will be regulated for years to come.

XRP price has been struggling lately on a lower time frame, while altcoins are enjoying massive bull rallies. However, on the weekly chart, Ripple indicates that it is forming a massive bullish pattern that could propel it higher.

XRP price reveals bullish technicals 

XRP price has been less volatile the past two weeks, while altcoins like Shiba Inu and others have more than doubled in less than six days. Interestingly, Ripple shows a massive bullish setup, the“cup and handle,” on a 2-week chart.

This technical formation consists of a rounding bottom that forms a cup and a smaller ‘U’ shape consolidation to its right, referred to as the handle. A decisive close above the line connecting the peaks of the cup and handle indicates a breakout and forecasts a 906% ascent, determined by measuring the distance between the cup’s lowest part and its right peak. Adding this measure to the breakout point reveals a target of $15.30.

However, XRP price will need to slice through its 2018 all-time high at $3.32 and rally exponentially to reach a new record high at $15.30.

XRP/USD 2-week chart

XRP/USD 2-week chart

While the technical formation projects a double-digit target, the Relative Strength Index (RSI) supports this scenario since it is hovering at 55, well below the overbought zone. Moreover, the inclined support line connecting the higher lows that RSI has formed since March 2, 2020, paints a positive picture of the ongoing trend.

Therefore, investors can expect any short-term downswings to bounce off this 574-day-old trend line.

Additionally, the Moving Average Convergence Divergence (MACD) shows that the MACD line (blue) is above the signal line (orange), which indicates a bullish crossover suggesting that the short-term bullish outlook is climbing.

The histogram also shows receding orange lines, hinting at a decrease in selling pressure. If the bullish momentum continues to increase, the histograms will also reveal a bullish crossover, adding credence to the optimistic outlook for the remittance token.

XRPUSD 2-week chart

XRPUSD 2-week chart

Ripple and XRP’s defining moment

While the technicals are currently displaying many supporting factors for a double-digit XRP, the fundamentals have to support it.

Perhaps the most significant event that could make or break this prediction depends on the SEC vs. Ripple. Despite having clear rules on what Bitcoin and Ethereum are, XRP seems to have been left behind.

On his last day as the United States Securities & Exchange Commission (SEC) chairman, Jay Clayton sued Ripple for selling unregistered securities in December 2020. Since then, Ripple has been stuck fighting this case against the SEC.

Although XRP price faced the repercussions of the lawsuit initially, it has managed to bounce back splendidly as it trades above $1. This resilience seen in the remittance token could be due to the slew of partnerships Ripple is making in the east.

Additionally, the Japanese government supports Ripple as a commodity like BTC or ETH. Moreover, the payments company has the full support of SBI Holdings, one of the largest banks in Japan. While all of these developments have kept XRP prices afloat, a win with the SEC will be the tipping point since it would, metaphorically speaking, give the power back to the cryptocurrency projects and put the SEC on a backfoot.

Such a move could also allow partnerships like MoneyGram, which fell apart due to the SEC’s lawsuit, to return. Moreover, it would also enable top cryptocurrency exchanges to relist XRP. All of these developments could propel the token past its all-time high at $3.32 and hit a new one.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Omicron crypto surges over 200% after being named as new COVID-19 variant

While cryptocurrency prices retraced after the new coronavirus variant Omicron emerged earlier this week, the digital asset with the same name gained popularity and surged over 200%. The small-cap crypto describes itself as a decentralized reserve currency on the Abribtrum Network.

More Cryptocurrencies News

SafeMoon price dips into buy zone, hints at the start of an 80% bull run

SafeMoon price saw its uptrend face a massive blockade, triggering the start of a huge pullback. Due to the retest of a bullish zone, market participants can expect SAFEMOON to restart its bull rally. SafeMoon price rose 484% from its low at $0.00000104 to $0.00000609 in a month.

More SafeMoon news

Basic Attention Token bucks downtrend with explosive rally to new all-time high

Basic Attention Token has snubbed the crypto downtrend and hit a new all-time high above $1.90. Brave browser has crossed 42 million active users, and BAT token utility is on the rise. Analysts predict a rally in the token.

More Cryptocurrencies news

Vitalik Buterin announces Ethereum scaling roadmap using the Graph protocol

Ethereum co-founder Vitalik Buterin revealed a strategic roadmap to expand the available data space for rollups using Graph protocol. The token’s trade volume has increased, and analysts expect an upwards move in GRT price. 

More Ethereum news

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

BTC

ETH

XRP