The price of XRP, the digital token associated with the Ripple payment network, has experienced a significant decline in recent days, falling by nearly 15% in October alone. This downturn can be primarily attributed to renewed legal challenges from the U.S. Securities and Exchange Commission (SEC) in its ongoing lawsuit against Ripple.
While the SEC’s appeal has cast a shadow over XRP’s prospects, some analysts remain optimistic about the token’s future. In fact, historical price patterns and recent whale accumulation suggest that XRP could be poised for a massive rally in the coming months.
A Fractal Pattern Suggests Potential for a 4,000% Rally
Crypto analyst CryptoBull has identified a striking resemblance between XRP’s current price behavior and its 2017 bull market trajectory. During that period, XRP consolidated within a symmetrical triangle pattern before breaking out and rallying by a staggering 66,240%.
As of October 2024, XRP is once again nearing the apex of a similar triangle structure on its monthly chart. If history repeats itself, a breakout could lead to substantial gains. In the case of symmetrical triangles, especially within an uptrend, breakouts tend to be bullish, with price gains matching the triangle’s height at its widest point.
For XRP, the apex of the current symmetrical triangle is around $0.52. Should the price break above the upper trendline from this level sometime around June 2025, the pattern’s potential upside target is near $23.40, representing a staggering increase of over 4,200% in the coming years.
Also Read: Bitwise’s XRP ETF Filing Sparks 8-Month High In Transaction Volume Amid Regulatory Uncertainty
Legal Headwinds and Technical Considerations
However, the SEC’s appeal in the Ripple lawsuit could pose a significant headwind for XRP’s bullish setups. If the agency successfully argues that XRP’s secondary sales to retail investors violated U.S. securities laws, it could lead to a breakdown in the symmetrical triangle pattern.
In that case, XRP could potentially break below the lower trendline of the triangle, coinciding with its 50-month exponential moving average (50-month EMA) and the 0.236 Fibonacci retracement line. A breakdown could lead to further price declines, with the next potential target around the 0.0 Fibonacci line at $0.11.
Despite the legal uncertainties, the potential for a massive rally in XRP remains a tantalizing prospect for investors. As the Ripple case unfolds, market participants will be closely watching XRP’s price action for signs of a potential breakout or breakdown.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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