XRP price is down around 7% over the past seven days, but one trader is bullish on its outlook. According to a video posted by Crypto Overkill on Twitter, XRP is “flashing a buy signal” on the monthly chart at around the $0.36 level.
XRP price has shown strong support at the $0.29 level since June so the downside potential from current levels is limited. Meanwhile, XRP has been trading in a somewhat tight range for the past few months so a break above the resistance level of around $0.55 could result in a strong bull trend.
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Prolonged XRP price consolidation
The analyst said:
“There is no confirmation we are in an uptrend, but we are in a consolidation pattern. A consolidation pattern is a great place to dollar-cost average.”
The analyst continued “we want to buy consolidation, we want to build our precision in this area, this is what smart money does,” rather than retail investors that tend to buy near the peak.
Looking at the XRP chart, it is evident that the XRP price has been consolidating for the last seven months.
Anticipating good outcome from the SEC case
Apart from the technical analysis showing a possible bullish breakout, there is also the much-awaited ruling on the SEC vs. Ripple court case that has dragged on for more than three years now. A majority of the crypto community feels the ruling will be in favour of Ripple seeing that a US court recently ruled that LBRY Credits (LBC/USD), the native token of Library Credit, was not a security.
The crypto community is drawing similarities between the two cases where the US SEC is urging that the XRP is a security just as it had alleged that LBRY Credits is a security.