XRP is gearing up for a noteworthy price increase, potentially as high as 60%, in the coming weeks. This bullish outlook follows a breakout from a symmetrical triangle pattern and is further bolstered by recent events in Ripple’s ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC).
Could XRP Reach $4 Soon?
In technical analysis, symmetrical triangles often indicate bullish trends, especially when the price breaks above the upper trendline—particularly if this breakout is backed by increased trading volume. On January 11, XRP successfully broke out of its triangle pattern. To project the expected price target, one can measure the triangle’s height and add that to the breakout level, suggesting a promising price target of around $4.
However, on January 12, XRP was testing the triangle’s lower trendline, resting at approximately $2.37. Should the price dip below this critical support level, it raises concerns about the validity of the breakout, increasing the risk of a decline toward the lower trendline, which aligns with the 50-12H exponential moving average at about $2.30. Conversely, as long as XRP stays above the upper trendline, the path to that $4 target remains viable.
Ripple’s Legal Win Against the SEC Boosts Confidence
The recent price movement seemed to coincide with Ripple celebrating a minor legal victory in its battle against the SEC. On January 11, a federal judge ruled in favor of sealing certain documents to safeguard sensitive information during the ongoing litigation. This ruling included measures to protect confidential and personal details tied to Ripple’s summary judgment request.
This decision comes as the SEC prepares to submit its opening brief for an appeal by January 15, aimed at contesting vital judgments from the Ripple case. The SEC’s October Notice of Appeal indicated its determination to dispute the Summary Judgment, particularly questioning Judge Analisa Torres’ ruling that argued XRP’s standard sales did not meet the criteria of the Howey Test. Since July 2023, the uncertainty surrounding this appeal has led to fluctuating prices for XRP.
Potential Changes in SEC Leadership
As the SEC gears up for a change in leadership—with Gary Gensler set to leave on January 20 and former commissioner Paul Atkins anticipated to take over—it’s clear that the agency plans to continue its appeal. Nonetheless, legal experts suggest that Atkins might adopt a more lenient approach to cryptocurrency regulation compared to his predecessor. This shift could bode well for Ripple and similar digital assets, as it may help reduce some of the legal ambiguities affecting XRP’s price movement.
With the scenario continuously evolving, optimism is growing that the new SEC leadership under Atkins could foster a more crypto-friendly environment, potentially easing the legal challenges that have weighed on XRP’s performance in the market.
Source: Cointelegraph
