A decent short-term bullish setup brewing in XRP markets

Nigeria (CoinChapter.com) — XRP looks to be gearing up for a bull run according to market indicators after going through a turbulent period during the recent crypto market correction.

The lawsuit filed against XRP’s parent company, Ripple Labs, filed by the US Securities and Exchange Commission (SEC) at the end of last year, had seen the token plummeting while its rival rose. The case is still in court currently. In detail, the SEC sued Ripple Labs for engaging in unregistered security offerings via XRP.

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News of this shook the community at its core. Bearish sentiment soared as investors dumped coins, fears around the case being that SEC might shut down the company. But despite this, the coin has held on strong, staging recovery after recovery of every crash. Now, indicators are pointing towards a bullish move.

Ripple price movements

A deeper analysis of the XRP price charts shows recovery movements after price dips. Each dip comes with strong buy pressure. Here, the coin poses a resistance towards further dips. Holding for the past couple of months in the $0.50 range.

A closer look shows similar head and shoulders patterns in the selling point. These occur right before buy pressure mounts. Sending the coin price skyrocketing for a time.

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The chart shows the inverse Head and Shoulder pattern in a perfect alignment, confirmed by three troughs hanging below a common baseline, with the middle one higher than the other two. As a result, traders interpret it as a bullish indicator, wherein the price might break above the baseline and rise by as much as the pattern’s maximum height.

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A 10% bullish move will push the price right into the $0.70 range.

XRP head and shoulder setup. Source: TradingView.com

Bitcoin still on the positive. This puts bullish pressure on altcoins to perform according to Bitcoin prices. Bitcoin positive shows more money coming into the market. Some of that money will trickle down into other altcoins like Ripple. This being because they are still relatively cheap.

Strong demand zone as head and shoulders are in the sell zone. Pennant formation indication a rise in prices to be seen soon. Upside with a solid consolidation in a new bullish direction. Price holding steady as head and shoulders formation show a price movement upwards.