XRP (XRP) looks set to rise 60% in the coming days after breaking out of its usual symmetrical triangle pattern.
The upward outlook coincides with a series of developments in Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
XRP price is targeting $4 in the “next few days.”
A symmetrical triangle is considered a bullish continuation pattern when the price moves above the upper trend line with increasing volume. This appears to be the case for XRP, which entered the breakout phase of the triangle pattern on January 11th.
The symmetrical triangle breakout target is determined by adding the maximum height of the pattern to the breakout point. Applying the same rules to the XRP chart would result in an upside target of around $4.
XRP/USD 12-hour price chart. Source: TradingView
The cryptocurrency could reach the level in the “next few days,” according to independent market analyst World of Charts.
As of January 12, XRP was showing signs of a retreat towards the triangle’s lower trendline at around $2.37.
A decline below this wave support risks invalidating the symmetrical triangle breakout scenario while also increasing the likelihood of a decline towards the pattern’s lower trendline.
This downside target is consistent with the 50-12H exponential moving average (50-12H EMA, red wave) around $2.30.
However, keeping the upper trendline high will likely keep the odds of XRP reaching the $4 symmetrical triangle target likely to remain high.
Ripple scored another small victory against the SEC.
XRP entered the symmetrical triangle breakout phase just hours after Ripple scored a small victory in its ongoing legal battle with the SEC.
On January 11, a federal judge granted an administrative motion to file certain documents under seal to ensure the confidentiality of sensitive information in the ongoing legal battle.
Specifically, the judge agreed to seal records containing confidential, sensitive, and personally identifiable information related to Ripple’s motion for summary judgment.
source: X
The ruling comes ahead of the SEC’s January 15 deadline for filing discovery briefs on its appeal challenging the key ruling in the Ripple case.
In an October notice of appeal, the SEC stated that it planned to challenge the summary judgment, including Judge Analisa Torres’ decision that public sales of XRP did not meet the criteria for the Howey Test. This appeal has contributed to XRP’s price volatility since July 2023.
Despite a change in leadership, with SEC Chairman Gary Gensler resigning on Jan. 20 and former Commissioner Paul Atkins expected to take his place, the agency remains committed to pursuing the appeal. It appears to be.
In December 2024, Gensler promoted a senior cryptocurrency enforcement lawyer to potentially ensure continuity of cases.
But legal experts predict that Atkins could reverse the SEC’s aggressive stance on cryptocurrencies and spark cautious optimism among investors.
“Paul favors free markets and hates excessive regulation. This will have a positive impact on the cryptocurrency world,” former SEC Internet Enforcement Director John Reed Stark said after Donald Trump was elected last November.
“Paul has also always believed that SEC enforcement can sometimes be too harsh, lacks consistency, and is in dire need of significant reform. Therefore, we expect that reigning in SEC enforcement will be a top priority for Paul.”
relevant: XRP price is preparing for a ‘strong move’ above $2.90 as sentiment indicators send bullish signals.
XRP price could reach $4 as optimism grows that Atkins’ incoming SEC leadership could reduce legal uncertainty by adopting a more favorable stance on Ripple and cryptocurrency regulation.
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