XRP has become one of the star cryptocurrencies on the market over the last two weeks, beating even bitcoin in the bullish race and gaining 31.11% against the flagship cryptocurrency in the XRP/BTC pair as illustrated below.
According to data from CoinMarketCap, Ripple has moved by 26% to the upside over the last seven days, and by 6% over the last day as illustrated below.
Judging by the price action of the cryptocurrency, the question remains "how far up can Ripple go, and how soon?"
While other cryptocurrencies barely moved up through the weekend, Ripple was making moves in its struggle to break through the resistance around the $0.49 zone.
Zooming out on the charts, we can see that Ripple is currently in a descending channel, as illustrated below.
The setup above shows massive bullishness on Ripple, but raises some very important questions:
For one, XRP's ability to break through the top of the channel doesn't seem assured, because the bears are likely laying in wait somewhere close, and will attempt to sink the price towards the next support level around $0.426 or lower.
The recent breakout from the cryptocurrency's 200-day MA has confirmed that Ripple is currently bullish. And if a breakout from the top of the channel happens, Ripple is expected to rally to $0.55, which is now the first target.
From this point, the bulls might still push the price higher from there by more than 10% to reach $0.6.
However, the RSI is currently too close to the overbought region, adding to the assumption that Ripple reaching $0.55 in a single move may be far-fetched.
If the bears are successful in starting a decline from the top of the channel where the cryptocurrency currently sits, the price would plunge and drop to less than $0.4, where the 200-day SMA currently sits.
Overall, it is generally believed that XRP's price movement is due to the proceedings of the court case between Ripple Labs (issuers of Ripple) and the US Securities and Exchange Commission (SEC).
As the case draws to a close in court, Ripple is expected to become more volatile and unpredictable, depending on the outcome of the ongoing legal battle.
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