Sheldon McIntyre, CMT
Independent Analyst
- XRP price is closing in on the largest weekly gain since December 2017.
- Judge denies access to Ripple executive’s personal financial records.
- The pennant pattern on the 12-hour chart has already reached the measured move target of $1.30.
XRP price advance has cleared many technical obstacles, including the 23.6% Fibonacci retracement of the 2018-2020 bear market, the psychologically important $1.00, and now it is testing the 38.2% retracement of the aforementioned bear market. Some near-term exhaustion is expected, but the international settlements token is on pace to continue the impressive rally.
XRP price successfully navigating the legal and business developments
XRP price has gained over 100% this week as Ripple is gaining legal ground in the Securities and Exchange Commission (SEC) lawsuit, raising speculation that an early settlement is not far away.
Underpinning the growing bullish sentiment is the judge ruling that personal financial records were irrelevant to the SEC case and insisted on maintaining the focus on the utility of XRP and if it is classified as a security, dealing a big blow to the SEC’s legal argument.
As Ripple expands internationally and the ongoing legal battle gains more clarity, new doors will continue to open to the upside for XRP price. In the near term, speculators should be focused on the 38.2% retracement level of the 2018-2020 bear market at $1.33 as resistance. It could become an obstacle considering that the daily Relative Strength Index (RSI) is beginning to show a bearish momentum divergence with today’s rally.
All resistance levels between the current price and the 2018 high are just speed bumps along the path to all-time highs. The breakout from the rounded bottom this week targets a rally to $5.60 over the long term, representing a 610% gain from the resistance line drawn on the chart and substantially higher than the all-time high at $3.30.
XRP/USD weekly chart
XRP has traveled a long distance in a short time, and speculators need to be mindful of key support because weakness will appear. The high of the intra-day pennant pattern at $1.12 should be important support, followed by the critical $1.00. A weekly close below $1.00 will corrupt the bullish outlook and raise the odds that a medium-term high has been printed.
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