With the developments in the cryptocurrency market, many altcoins have experienced significant price increases, led by Bitcoin. In particular, the possibility of Bitcoin spot ETF approvals has encouraged many investors and institutions to enter the crypto market. Accordingly, XRP could rise by more than 20% in the coming weeks, thanks to the momentum in the market.
Attention-Grabbing Formation on XRP Chart
The bull flag formation on the daily XRP chart develops when the price consolidates within a channel after a strong uptrend. After convincingly crossing above the upper trendline with convincing volumes and reaching the previous uptrend peak, the formation structure starts the upward movement to gain momentum.
The XRP chart on November 26, although it raises concerns with weak volumes, continues to trade above the upper trendline of the bull flag. This process indicates a weakening belief among investors that the rise in XRP price will continue.
The indecisiveness among investors may cause the XRP price to test the upper trendline of the flag as support. In this case, a decline towards the historical support level of $0.59, which corresponds to the 50-day exponential moving average (red line) until November, could occur.
This level also stands out as the downside target level on the weekly timeframe chart of XRP. If the bull flag scenario unfolds as expected, and a breakout occurs with a substantial recovery at the trend support level, the XRP price could reach $0.75 in December, an increase of over 20% from the current price level.
However, a break below the lower trendline of the flag would delay the continuation of the uptrend, and the trend support line intersecting with the 200-day EMA (blue line) at the $0.54 level could become the next downside target.
Whales Continue to Accumulate XRP
Attention-grabbing on-chain data on the XRP side indicates that the price is gaining momentum due to strong accumulation among whales. During the correction period in XRP, the accumulation trend among addresses with balances between 100,000 and 10 million tokens coincides with the same period. These addresses, called whales, added $6.82 million worth of XRP tokens to their balances last week.
In summary, these investors bought XRP at recent local bottom levels and renewed their belief in a potential price increase in December. This occurred during the period when the bull flag formation on the chart developed.
