XRP’s price is currently in a consolidation phase. It has been in a price correction since July and is currently presenting an attractive opportunity for long-term investors.
On July 13, Ripple recorded a big victory in its lawsuit with the U.S. Securities and Exchange Commission (SEC), which led to an almost 100% surge for XRP. The SEC’s attempt to file an interlocutory appeal to challenge part of this decision was denied by Judge Torres in early October.
After Ripple’s multiple victories, the SEC, on October 19, chose to end cases against Ripple’s executives Brad Garlinghouse and Chris Larsen. However, the SEC vs. Ripple lawsuit, focusing on XRP sales to institutional investors remains. Recent filings suggest a potential boost for XRP if the upcoming meeting between SEC and Ripple yields favorable outcomes.
XRP’s Inverse Head-and-Shoulders Pattern
An XRP analyst on X has shown another sign for an upcoming XRP bull run. Max Pain (Mangyek0) pointed out an inverse head and shoulders setup in XRP’s three-day chart. He states, “In its 10-year history, ALL major, mind-melting $XRP moves had this pattern pop up before it… Now, a similar setup can be seen on the 3-day chart.”
In a post from August, Max Pain highlighted this pattern and showed how it had always formed before XRP’s historical bull runs. Max Pain’s new chart shows this pattern form again, just before the surge in July.
Another potential inverse head-and-shoulders pattern is taking shape. This pattern comprises three swing lows: the head, flanked by two shoulders. A neckline is formed by connecting the peaks between the valleys.
Key Targets and Measurements
To confirm the start of an uptrend, a decisive breakout above the neckline is required. In this case, the target can be calculated by measuring the distance between the right shoulder’s peak and the head’s lowest point and adding this value to the breakout point. Currently, the right shoulder is yet to form. XRP’s price has to jump nearly 50% to reach the neckline.
A decisive breakout above the neckline could trigger a 60% rally to $1.234, a substantial 138.45% increase from the current price of $0.5175. XRP is up by more than 6% in the last 7 days but has a long way to go to reach the projected price.
However, the setup could fall apart if XRP goes below the $0.413 support level. This drop would invalidate the inverse head and shoulders pattern and could send XRP down to $0.33.
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