XRP has seen a huge pump lately, up almost 30% over the last two weeks. This rally continued steam after Bitnomial’s voluntary dismissal of its own lawsuit against the SEC. The announcement has driven new excitement for the second-largest cryptocurrency, which has been lifted by technical factors pointing to more upside.
Bitnomial has opted to withdraw its legal challenge against the SEC. Additionally, many believe this move is a great indication of things to come for XRP specifically. It introduced the first CFTC-regulated XRP futures within the United States. This preemptive move, if finalized, would appreciably increase the attractiveness of the market for institutional investment. More importantly, it brings XRP closer to adoption within the regulated financial landscape.
Bullish Continuation Pattern Emerges
XRP tested the triangle's lower trendline on March 21, reinforcing the pattern's validity. The upper trendline of this triangle converges at the apex point at $2.35, which would serve as a perfect breakout zone.
Analysts warn that a breach under the lower trendline would invalidate this bullish setup. The possible breakdown point at $2.35 acts as a signal for a bearish target. This target is derived by taking this level and subtracting the triangle’s maximum height. This worst-case scenario bearish target is at $1.28, making it all the more significant that support stays above the lower trendline.
Eyes on $4.35 Target
Even though there are bearish possibilities, the prevalent bullish setup still places XRP on a trajectory towards $1.28. If a breakout does happen, the maximum target for this possible move is $4.35 by June. This breakout would confirm a strong 75% increase from today’s price action. That latter point would surely make it an attractive addition to many investors, as well as traders.
The XRP/USD weekly price chart further supports this positive outlook, showcasing the cryptocurrency's rebound and its potential to reach new heights. XRP technical traders are intently watching the action on the price chart. They want to see clear evidence of a breakout and follow-through action before heading towards our $4.35 target.
