Developments in the cryptocurrency market, especially the possibility of Bitcoin spot ETF approvals, have led to the appreciation of many altcoins. This situation, with the help of the momentum in the market, could cause XRP to rise by more than 20% in the coming weeks.
The bull flag formation in the XRP chart develops when the price consolidates within a channel after a strong upward movement. After crossing the upper trend line with convincing volumes and reaching the previous peak of the uptrend, the formation structure starts a upward movement to gain momentum.
Despite raising concerns with weak volumes on November 26, the XRP chart continues to trade above the upper trend line of the bull flag. This indicates a weakening belief among investors that XRP price will continue to rise.
The indecision among investors could cause XRP price to test the upper trend line of the flag as support. In this case, a downward movement towards the historical support level around $0.59, which is the 50-day moving average until November, may occur. This level also stands out as the downward target level for XRP on the weekly timeframe chart.
If the bull flag scenario materializes as expected and there is a breakout with a significant recovery at the trend support level, XRP price could reach $0.75 with an increase of more than 20% from the current price level in December. However, a breakdown below the lower trend line of the flag could delay the continuation of the uptrend, and the trend support line intersecting with the 200-day EMA at $0.54 level could become the next downward target.
Notable on-chain data in XRP indicates an acceleration in price due to strong accumulation among whales. During the correction period in XRP, the accumulation trend between addresses with balances ranging from 100,000 to 10 million tokens corresponds to the same period. These addresses, known as whales, added $6.82 million worth of XRP tokens to their balances last week.
