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The XRP Price is making another attempt to break out of its symmetrical triangle pattern. If successful, a sharp upward movement may follow. Positive XRP news in the form of Ripple vs SEC case resolution may help this view.
At the appeal hearing on January 30 The case of LBRY vs SEC, a United States judge granted a summary judgment and decided to limit Securities and Exchange Commission (SEC) oversight of secondary crypto markets. This could have a positive effect by setting a precedent for securities law that could then be used in the Ripple and SEC ruling, as the latter uses ambiguous “secondary market” terminology in its Ripple case.
Also, the IG in London Published an article The Ripple Labs vs SEC case states that the outcome could see the price of XRP rise and benefit the cryptocurrency market in a big way.
XRP Consolidates Below Price Resistance
From April 2021, the Price XRP’s fall below the resistance line. This decline results in a June 2022 low of $0.287.
After that, the price started to rise, and in Sep RSI (white line). It could not sustain its uptrend, so it is currently trading below its breakout level.
However, the future outlook remains positive. This is mainly because the weekly RSI has formed another positive divergence (green line). Therefore, the price may still advance to the $0.580 horizontal resistance area. If it moves higher, the average price may increase towards $0.900.
On the other hand, a weekly close below $0.300 would be bearish and could push the XRP token price towards $0.200.
Will the breakout ever happen?
A technical analysis of the daily chart reveals that since June 2022, the XRP price movement has been bounded by a symmetrical triangle. A symmetrical triangle is considered a neutral pattern, although the price movement reveals several positive indicators. As a result, it causes a disconnection from the digital asset.
First, on January 2, the price of XRP formed a neat hammer candlestick (black icon). The candle started the current upward momentum, preventing the triangle from collapsing. XRP price then recaptured the horizontal $0.385 area and confirmed it as support (green icon).
In the last 24 hours, XRP price has been rejected by the triangle and has been falling. However, the daily RSI has formed a hidden bullish divergence (green line). This is a strong indication of trend continuation, which may lead to a breakout. If it does, $0.505 will be the next point of resistance.
However, a close below $0.385 could invalidate the XRP forecast and lower the price to $0.340.
In conclusion, an increase to $0.505 following the breakout from the triangle may be the forecast for XRP price. A daily close below $0.382 will invalidate this bullish outlook and push XRP’s price back to the $0.340 support line.
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