XRP (XRP) price has recovered by almost 30% in the last two weeks, led by a crypto market rebound, and Ripple’s long-running legal battle against the US Securities and Exchange Commission (SEC) comes to an end.
The cryptocurrency’s rebound is also occurring inside the confines of a classic bullish continuation pattern, promising further gains in the coming weeks.
XRP symmetrical triangle puts 75% rally in play
XRP’s bullish technicals appear as it forms what appears to be a symmetrical triangle pattern.
A symmetrical triangle is considered a classic bullish continuation setup that forms after the price consolidates inside a range formed by converging trendlines after a strong uptrend.
As a rule of technical analysis, the setup resolves when the price breaks above the upper trendline, potentially rising as high as the length of the maximum distance between the upper and lower trendlines.
As of March 21, XRP bounced after testing the triangle’s lower trendline, eyeing a rise toward the upper trendline—around the apex point at the $2.35 level—by April. The ultimate target for this possible breakout is $4.35 by June, up 75% from the current price levels.
Conversely, a drop below the lower trendline could invalidate the bullish setup, setting XRP on the path toward $1.28. The bearish target is obtained by subtracting the triangle’s maximum height from the potential breakdown point at $2.35.
XRP fundamentals boost upside outlook
The bullish technical setup is developing in line with a recent flurry of positive events around Ripple and XRP.
Notably, the cryptocurrency climbed by as much as 7.85% to reach $2.41 on March 21, two days after the SEC dropped its appeal against Ripple.
The rally gained momentum after crypto exchange Bitnomial voluntarily dismissed its lawsuit against the SEC before launching the first CFTC-regulated XRP futures in the US.
Futures contracts allow traders to speculate on XRP’s price without directly holding the asset, increasing overall market activity. This deepens liquidity, reducing slippage and making it easier to execute large trades.
However, according to crypto lawyer John Deaton, Ripple still faces a legal hurdle in the form of an injunction issued by Judge Analisa Torres, which restricts the company from selling XRP to institutional investors.
He told Cointelegraph that the ruling can potentially limit Ripple’s ability to distribute XRP directly to institutional investors, namely banks and financial institutions, adding:
“If Ripple obviously wants to be able to issue XRP to banks in America directly, I think the hang-up is that injunction. How do you get past that injunction?”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.