XRP has been gaining bullish momentum lately amid optimism from the crypto community regarding the outcome of Ripple’s lawsuit with the SEC.. This could trigger a bullish price breakout from a long-term pattern.
As the editors of BeInCrypto recently said, the confidence of the crypto community in the victory of Ripple over the US Securities and Exchange Commission (SEC) is growing every day.. The situation is developing according to a favorable scenario for Ripple. Industry experts are calling for an investigation into the SEC for misleading Congress and the markets.
Crypto Law founder and XRP supporter John Deaton suggested that the judge in charge of the case could give the firm an outright win.. Ripple CEO Brad Garlinghouse himself is confident that the battle will end in the first half of this year.
In addition, members of the crypto community are not the only ones who are closely following this saga.. Major financial players are also showing increased interest in what is happening in the crypto industry.. London-based IG Bank recently published an article about the Ripple case against the SEC.. The bank noted that the victory of the SEC could negatively affect the crypto industry, and a positive outcome for Ripple could provoke a rally in XRP.
However, while the industry is full of hopes and predictions, we have yet to receive any concrete news on the outcome of the case.. If the court verdict turns out to be favorable, this could lead to an influx of fintech companies in the US. Otherwise, a mass exodus of crypto companies from the country and a “brain drain” are likely.
Growth momentum continues
The results of the technical analysis show that the price of XRP since April 2021 has been declining along the line of a long-term downward resistance. As a result, the token hit a low of $0.287 in June 2022.
After that, the price began to rise and broke through this resistance line in September against the backdrop of a bullish divergence on the weekly RSI (white line). However, the market failed to sustain this uptrend and XRP is now trading below the breakout level.
However, the outlook for Ripple remains positive.. The weekly RSI has again begun to give bullish divergence signals (green line), similar to those that preceded the bullish breakout. Thus, the price can still rise to the $0.580 horizontal resistance level, and if it breaks out, it can go to $0.900 (average price).
Meanwhile, closing the week below $0.300 may push the coin rate back to $0.200.
Source: TradingView What's in store for XRP this month
The daily chart shows that Ripple has been staying inside a symmetrical triangle since June 2022.. This pattern is considered neutral, and the price can break out of it either up or down.
However, price action and indicators are bullish.. So, XRP formed a “bullish hammer” pattern on January 2 (black icon). This candle inspired the current uptrend and kept the triangle from collapsing.. After that, the token recovered above the $0.385 horizontal area and turned it into support (green icon).
For the last 24 hours, the price has been declining after rebounding from the border of the triangle. However, the daily RSI generates hidden bullish divergence signals (green line). This is a sign of a continuation of the trend and could lead to a bullish breakout.. In this case, the next resistance will be $0.505. Reaching this mark will mean a price increase of about 30% from current levels.
In the meantime, a close below $0.385 will reverse the XRP bullish scenario and send the coin to $0.340.
Source: Trading View
The most likely prediction for XRP for February is a bullish break out of the triangle and a subsequent rally towards $0.505. The good news about Ripple could be the catalyst for this growth. On the other hand, a daily close below $0.382 would cancel the bullish scenario and push the market back to the $0.340 support level.
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