Key breakout looms for XRP. Here is the price action

Key breakout looms for XRP. Here is the price action

By Motiur Rahman - min read
  1. Ripple’s case with SEC continues to drag on as regulator slams XRP-friendly firms
  2. XRP stays bullish despite consolidating the past week
  3. Expect a breakout from an inside bar, with $0.60 in sight

Ripple XRP/USD remains bullish but has been consolidating lately. The developments regarding Ripple’s case with the SEC continue to be the main price catalyst.

On October 5, the SEC protested amici briefs submitted to the court by two firms supporting Ripple. The regulator said the briefs contradicted the prior court’s order and fell outside the limitations of discovery rules. Ripple has since slammed the SEC for its attempt to stop XRP-friendly firms ahead of the summary judgement.

While the outcome of Ripple’s case with the SEC remains uncertain, XRP buyers have been positioning for a win. In September, CoinJournal reported that Ripple and the SEC had called for a summary judgement of the case. In fact, the latest attempt by the SEC to block the friendly firms is raising speculations of a shaken regulator. Nothing is the truth now, but it remains to be seen how this plays out next. 

XRP forms an inside bar on the weekly chart

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As XRP hit $0.5, the price stalled, leading to the formation of an inside bar set-up. An inside bar indicates indecision in the market. Normally, inside bars form when a strong move occurs in the market. In a bullish market, the price “pauses” before the next move. 

Source – TradingView

In the weekly chart, we can see an inside bar set up after XRP rose strongly. While the inside bar communicates indecision, it signals that the token is gathering momentum for the next move. 

We can also see that the MACD indicator is showing a building momentum. It means that we are more likely to see a bullish breakout soon. 

Concluding thoughts

It is not yet time to buy XRP. A bullish breakout of the inside bar will confirm a buy trade. $0.60 will be the next level to watch. Potentially, XRP could rise above $0.6 on a strong move in the market.