In recent days, XRP has faced a notable 15% decline, largely driven by renewed concerns over Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). This drop has raised questions for investors about whether this could be the start of further losses or the setup for a significant upward move.
While the legal uncertainties surrounding Ripple continue to impact market sentiment, many analysts view this price dip as a potential buying opportunity. Historical price data, combined with increasing whale accumulation, suggests that XRP may be on the verge of a major rally, much like its historic surge in 2017.
XRP’s Symmetrical Triangle Formation Hints at a Potential Breakout
Crypto experts are drawing attention to XRP’s price movements, which bear striking similarities to its 2017 bull run. Back then, XRP formed a symmetrical triangle pattern before breaking out and soaring over 66,000%, reaching an all-time high of $3.31. Currently, as of October 2024, XRP’s price action is once again nearing the apex of a similar symmetrical triangle on the monthly chart.
Symmetrical triangles typically signal strong price moves, particularly in the context of an uptrend. Should XRP follow the same trajectory as it did in 2017, a breakout from this triangle could lead to substantial gains.
The apex of the current triangle is positioned around $0.52, and if XRP breaks above the upper trendline in mid-2025, the potential upside target could be as high as $23.40, representing a massive 4,200% increase.
Legal Challenges: SEC Appeal May Impact XRP’s Price Outlook
Despite the technical bullish signals, XRP faces potential headwinds from the ongoing legal case with the SEC. The SEC’s appeal, if successful, could argue that XRP’s secondary market sales to retail investors violated securities laws, which may dampen the token’s bullish momentum and introduce more volatility.
In summary, while Ripple’s legal challenges with the SEC present short-term risks, XRP’s historical patterns and whale activity suggest that it could be gearing up for a major breakout. As always, investors should keep a close eye on both legal developments and technical price action when making their decisions.
