The price of XRP is poised for a potential breakout from a well-known chart formation in the near future, following Ripple’s acquisition of its inaugural license in the Middle East.
XRP price analysis suggests potential 46% increase
XRP has been trading within a descending triangle formation since it hit a seven-year peak of $3.40 on January 16.
After receiving support from the triangle’s horizontal boundary at $2.00, the XRP/USD pair has recently established a series of higher lows over the past four days, moving towards the upper trendline, as illustrated in the chart below.
XRP/USD daily chart.
XRP’s price is currently testing the upper trendline of the triangle at $2.30, raising expectations for a daily candlestick close above this mark.
Should this occur, XRP may surge towards the significant psychological level of $3.00, a crucial supply zone that has previously stalled the price on two occasions.
Breaking through this barrier could propel the price towards the next major resistance level at $3.27 and eventually to the multi-year high of $3.40, translating to a potential increase of 30% to 46%.
Meanwhile, an analyst has pointed out that XRP’s decline below $2.00 offered an excellent entry point for buyers, with profit targets around $3.40.
Ripple secures license in Dubai
On March 13, Ripple announced it obtained approval from the Dubai Financial Services Authority, allowing it to provide regulated cryptocurrency payment services in the UAE.
This approval, Ripple’s first within the Middle East, enables the company to access the UAE’s $40 billion remittance market and $400 billion international trade sector.
Following this announcement, XRP’s price jumped 6% from a low of $2.21 to a high of $2.34 on March 11, showcasing positive market sentiment.
A commentator highlighted that Ripple’s license from the DFSA signifies a major shift, positioning the company as a frontrunner in the regulated cryptocurrency payment landscape of the UAE’s $40 billion cross-border market.
Ripple’s legal challenges with the SEC nearing conclusion
Another possible driver for XRP’s price is the anticipated resolution of the SEC’s case against Ripple.
The ongoing legal dispute with the US Securities and Exchange Commission (SEC) over allegations of unregistered XRP sales, which began in 2020, appears to be approaching a conclusion.
A pivotal July 2023 ruling declared XRP not to be a security in retail transactions, although Ripple faced a $125 million fine for institutional breaches. Recent reports suggest both parties are considering dropping their appeals, with Ripple seeking more favorable terms amidst a shift in SEC enforcement priorities under new management.
According to sources, the case could be winding down soon, and the SEC might be rethinking its strict stance on cryptocurrency regulation, potentially moving towards a more accommodating approach.
As previously reported, several legal actions against cryptocurrency firms have been dismissed recently, including cases against well-known entities by the new SEC leadership.
This article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before proceeding.