XRP (XRP) has turned in sizable gains over the past month as traders continue to put their faith in Ripple’s potential legal victory against the U.S. Securities and Exchange Commission (SEC).
For example, 30 days after Ripple, the price of XRP rose 25%, and the SEC filed an immediate ruling on whether the sale of XRP violated U.S. securities laws. By comparison, Bitcoin (BTC) and Ether (ETH) are down 4% and 11% respectively over the same period.
Now, a series of indicators ranging from on-chain to technical suggest that XRP can continue its upward trend through 2023.
XRP Price “Bull Pennant”
A bullish pennant is a bullish continuation pattern, formed when price strengthens in a triangle-like range after a strong upward movement. In other words, they break out after the price breaks out in the direction of the previous uptrend.
On the daily chart, XRP has been trending within a similar tech structure since late September, as shown below. Meanwhile, Token has tried to go over the pennant twice, but without success. Another breakout is now expected in the next few days.
In theory, a bull pennant breakout will push the price up as much as the previous uptrend. Therefore, XRP’s bull pennant breakout could push the price to his $0.63 in Q4 2022.
This represents a price increase of 35%.
Detect strong accumulation
XRP’s bullish technical setup has received further clues from on-chain data, indicating accumulation is underway.
Notably, XRP’s average coin age (the average age of all tokens on the blockchain as measured by their purchase price) has been on the rise since September. according to to data from Santiment. The metric theoretically suggests that more and more XRP users are holding tokens.
Additionally, data tracker Whale Alert detected withdrawals of millions of dollars worth of XRP on Bitstamp, Bitso, and other cryptocurrency exchanges, reducing the sellable supply.
Notably, since October 14th, investors have moved a total of $126 million worth of XRP from exchanges to unknown wallets. By comparison, $78.99 million worth of XRP was deposited on these exchanges.
65,200,000 #XRP Transfer from (31,260,398 USD) #Bizzo to unknown wallethttps://t.co/uZcv8p7bcD
— Whale Alert (@whale_alert) October 13, 2022
Legal Victory for Ripple?
The root of all the bullishness on XRP over the past few months is that Ripple could beat the SEC.
One of Ripple’s core arguments is a speech by former SEC Director William Hinman at the 2018 Yahoo Finance All Markets Summit. Hinman said Ethereum is not a security, even though he conducted his initial coin offering (ICO) round to raise funds.
RELATED: Federal Regulators Are Preparing to Rule on Ethereum
Ripple’s defense is that the SEC should treat XRP like Ether. And many believe that this argument guarantees the company victory. Example: Alpha Contributor The Digital Trend said:
“The news that the court dismissed the SEC’s objection to disclose more documents related to Hinman’s 2018 speech led to a spike in XRP prices on Sept. 30. XRP dropped to 12 in 24 hours. %rise […] These post-hearing rallies may just be an indication of what happens if XRP wins. ”
Ripple CEO Brad Garlinghouse expects the lawsuit to end in the first half of 2023.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.
