XRP (XRP) has seen a substantial recovery of nearly 30% over the past two weeks, spurred by a resurgence in the cryptocurrency market and the conclusion of Ripple’s prolonged legal dispute with the US Securities and Exchange Commission (SEC).
The recent resurgence of the cryptocurrency is taking shape within a classic bullish continuation pattern, suggesting the potential for further increases in the upcoming weeks.
### XRP’s Symmetrical Triangle Indicates Potential Rally
The technical indicators for XRP appear bullish as it forms a symmetrical triangle pattern. This pattern is recognized as a traditional bullish continuation setup that occurs after the price consolidates within a range defined by converging trendlines, typically following a strong upward trend.
According to technical analysis principles, a breakout is anticipated when the price rises above the upper trendline, potentially reaching heights determined by the maximum distance between the upper and lower trendlines.
As of March 21, XRP rebounded after touching the lower trendline of the triangle, looking toward a rise to the upper trendline—around the apex of $2.35—within the month. The ultimate target for this potential breakout could be $4.35 by June, marking a 75% increase from current price levels.
On the flip side, if the price falls below the lower trendline, it may invalidate the bullish scenario and see XRP heading toward $1.28. This bearish target is calculated by subtracting the maximum height of the triangle from the projected breakdown point at $2.35.
### Positive Fundamentals Enhance Upside Potential
This bullish technical setup aligns with a wave of favorable developments concerning Ripple and XRP. Notably, the cryptocurrency surged by as much as 7.85%, reaching $2.41 on March 21, merely two days after the SEC withdrew its appeal against Ripple.
The upward movement accelerated further when crypto exchange Bitnomial voluntarily withdrew its lawsuit against the SEC and subsequently introduced the first CFTC-regulated XRP futures in the United States.
Futures contracts enable traders to speculate on XRP’s price without needing to hold the asset directly, which boosts overall market activity. This increases liquidity, reduces slippage, and makes it simpler to execute significant trades.
However, according to legal expert John Deaton, Ripple still grapples with a legal constraint from an injunction issued by Judge Analisa Torres, which inhibits the company from selling XRP to institutional investors.
Deaton noted that this ruling could limit Ripple’s capacity to distribute XRP directly to institutional clients, such as banks and financial entities, stating, “If Ripple wants to directly issue XRP to banks in the U.S., the challenge is navigating around that injunction. How do you get past that injunction?”
This article does not serve as financial advice or recommendations. All investment and trading activities carry risk, and individuals are encouraged to conduct their own research before making any decisions.