By Chris Hollingworth 
XRP Price Surge and Technical Analysis
XRP (XRP) has seen a notable recovery of almost 30% over the past two weeks, driven by a resurgence in the broader cryptocurrency market and significant developments in Ripple’s legal battle with the US Securities and Exchange Commission (SEC).
The current price action of XRP is unfolding within the confines of a classic bullish continuation pattern, suggesting the potential for further upside in the near future.
XRP Symmetrical Triangle Pattern
Technical analysis indicates that XRP is forming a symmetrical triangle pattern, a well-known bullish continuation setup. This pattern typically emerges following a period of consolidation within converging trendlines after a strong uptrend.
According to technical analysis principles, a breakout occurs when the price surpasses the upper trendline, potentially leading to a price increase equivalent to the distance between the upper and lower trendlines.
As of March 21, XRP rebounded after testing the lower trendline of the triangle pattern. The next target is the upper trendline, located around the apex point near $2.35, with a potential breakout target of $4.35 by June, representing a 75% increase from current levels.
Conversely, a breakdown below the lower trendline could invalidate the bullish setup, potentially sending XRP towards $1.28. This bearish target is determined by subtracting the triangle’s maximum height from the breakdown point at $2.35.
XRP Fundamentals and Legal Developments
The positive technical setup aligns with recent favorable news surrounding Ripple and XRP. Following the SEC’s decision to drop its appeal against Ripple, XRP surged by 7.85% to reach $2.41 on March 21.
Furthermore, Bitnomial, a crypto exchange, withdrew its lawsuit against the SEC and subsequently launched the first CFTC-regulated XRP futures in the US. Futures contracts enable traders to speculate on XRP’s price movements without holding the underlying asset directly, enhancing market activity and liquidity.
Despite these positive developments, Ripple still faces legal challenges, including an injunction issued by Judge Analisa Torres that restricts the company from selling XRP to institutional investors. This ruling could impede Ripple’s ability to distribute XRP to banks and financial institutions directly.
In conclusion, the recent surge in XRP price and the formation of a bullish technical pattern are influenced by both market dynamics and legal developments surrounding Ripple and XRP. It is important for investors to stay informed about these factors when considering their investment decisions.
