Ripple Breaks Out Above a Pennant, XRP/USDT May Retest 2021 Highs at $2

Ripple has had its fair share of controversy.

From claims of being designed not to benefit the community or anchoring on blockchain principles as a centralized outfit to accusations of XRP being a security.

The strike by the U.S. SEC in late December 2020 saw XRP deleverage drastically, sinking to as low as $0.16. It was only after the initial FUD had subsided did XRP prices recover to pre-SEC declaration levels.

Ripple Market Performance and Price Status

Since then, the project and coin have been thriving despite the relatively low liquidity and flippening.

When writing, XRP is at seventh, down the pecking order but is firmer with more upsides.

Though the market is cooling off and BTC consolidating above the psychological $60k level, XRP tailwinds are more fundamental than technical.

The weight of the ongoing court case can cause rapid changes in volatility. At the same time, a relisting at Coinbase is enough to provide fuel to buyers.

Thus far, the immediate resistance level is at $1.20. Buyers have a solid base and print higher highs, as visible in the XRP/USDT daily chart. A close above $1.20 may be the foundation for another upswing to Q3 2021 highs at $1.40.

Based on the Fibonacci extension tool of the Q3 2021 trade range, further gains may pump XRP back to $1.95—2021 highs in a buy trend continuation pattern. The level flashes with the 1.618 Fibonacci extension line of the same anchor trade range.

Notably, XRP prices found support at the golden ratio level at the 61.8 percent mark or Q3 2021 lows of $0.85—a critical reaction line.

Historically, reaction and trend resumption from this golden level often lead to reclaiming recent swing highs. Therefore, it is highly likely that Ripple buyers may reap above $1.40.

XRP Ready for $2

On Twitter, one trader is bullish on XRP.

Based on his analysis of the XRP/USDT daily chart, he predicts bulls to drive the coin back to $2.

#XRP Tp1. 1.2
Tp2. 1.35
Tp3. 1.6
Tp4. 2 (10 days from now if we break 1.4)

What i see in chart is ez 1.17~1.2 by today

Stop loss= 1.04 < any amount under this is 100% sell order.
#XRPUSDT pic.twitter.com/3PRydocojv

— Benjamin Levy (@BenjaLevyy) November 2, 2021

However, this is subject to a break above $1.40.

As mentioned earlier, the $1.40 critical resistance line marks Q3 2021 highs.

Therefore, a close above this line should be easily distinguished. Ideally, the breakout bar should be wide-ranging and have high trading volumes—an indicator of participation and buyers’ conviction.

If these conditions are met, the probability of XRP prices easing past other minor reaction levels to retest 2021 highs would be high.

Ripple Breaks Out Above the Pennant

According to a trader on Trading View, the next major resistance and buy target for XRP bulls stand at $1.40.

Currently, XRP/USDT is within a bullish breakout pattern following gains of November 3. Per his analysis, every low, therefore, may provide entries for traders targeting $1.40.

However, if bears flow back and XRP prices sink below $1, the trend would shift to favor sellers.

It same move that’s also been noted by another trader on YouTube.

He observes that Ripple prices are now breaking away above a key resistance trend line above $1.10 following a period of consolidation.

Still, based on the recent history, Ripple buyers must close above $1.20 for a strong move up towards $2.

At the same time, even if XRP bears flow back, buyers must maintain prices above the psychological round number at $1.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.