Key Takeaways:
- Ripple's upcoming summary judgement has added bullish tailwinds to XRP.
- Moreover, XRP price painted a bullish technical setup.
NEW DELHI (CoinChapter.com) — Ripple’s native token, XRP, has made impressive gains over the past five days, considering the choppy crypto market conditions post the FTX apocalypse.
XRP price jumped nearly 22% in less than five days, going from a Nov 21’s low of $0.345 to an intraday high of $0.42 on Nov 25. Moreover, the uptrend helped XRP break out above a bullish technical pattern called the ascending triangle.
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows forms an ascending triangle pattern. Volume helps determine if a breakout is strong.
In an ideal world, buyers would enter the market as the trendlines close the gap, pushing prices above horizontal resistance with heavy volumes. Unfortunately, a low-volume breakout on the upside will likely fail, resulting in a pullback.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. Therefore, the XRP price might jump more than 26% from current levels to $0.48. But, the cryptocurrency token’s declining volumes might have bulls worried about a fakeout.
Ripple SEC Summary Judgment Filing Deadline Approaches
The deadline for filing the summary judgment in Ripple’s legal battle with the Securities and Exchange Commission is November 30. Another important date for Ripple is Dec 2, when both sides meet to discuss the case redactions.
Meanwhile, Australian crypto enthusiast and lawyer Bill Morgan stated in a Twitter post that a case settlement seems likely after Dec 2. Moreover, Morgan is optimistic about a settlement in favor of Ripple, as possessing the Hinman speech documents gives Ripple leverage.
Also Read: Binance Adds $1B For Crypto Industry Recovery — But BNB Risks Losing Another 15%
The legal expert noted that the SEC might be forced to settle to maintain the secrecy of the Hinman documents. In addition, releasing the documents might impact the SEC’s stance on crypto regulation.
Traders would likely continue buying to profit from XRP’s uptrend in case of a favorable resolution.
XRP Price Faces Resistance From EMA Confluence
The Ripple token price’s recent bullrun might halt as bears have started selling aggressively. XRP price swung nearly 7.7% between intraday low ($0.39) and high ($0.42) levels on Nov 25.
Moreover, XRP’s price uptrend currently faces resistance from a confluence of its 50-day EMA (purple wave) and 100-day EMA (blue wave) near $0.414. Therefore, breaking and holding above immediate resistance would provide the XRP price the momentum to target resistance near $0.43 before retreating.
Conversely, if the bears continue selling, the Ripple token might end up testing support from its 20-day EMA (red wave) near $0.39. Needling below the immediate support level might force the XRP price to support near $0.37.
Meanwhile, XRP’s relative strength index for XRP remains neutral, clocking at 50.37 on the daily charts.
Worried about the Grayscale Bitcoin Trust? Here’s everything you need to know
