- XRP has successfully tested the support at the $2.30 price level and now eyes the 20-day EMA.
- The cryptocurrency has broken out of a multi-year symmetrical triangle with a $15 price target.
- Lawyer Jeremy Hogan said that a private settlement between the SEC and Ripple would be the quickest resolution.
XRP is currently testing a crucial support level, raising concerns about a potential price drop in the near term.
The fourth-largest digital asset dipped to $2.34 at the time of writing, and is now attempting to flip the 20-day Exponential Moving Average (EMA) at $2.3492 into a support level
What’s the Immediate Risk for XRP?
If the 20-day EMA fails to hold as support, further decline is possible. The immediate support lies at the recently tested $2.30 level.
Technical indicators are flashing mixed signals, with some suggesting caution. The daily chart shows that the Relative Strength Index (RSI) stands at 48.91, hovering near the neutral 50 level. While this means the digital asset is neither overbought nor oversold, an RSI below 50 can indicate weak bullish momentum.
Meanwhile, the XRP price is positioned near the middle Bollinger Band line at $2.3270, with the upper band resistance at $2.7169. If XRP can stay above the 20-day EMA, it could push toward the upper BB range in the short term
XRP Price Targets for a Bullish Rally
Despite the short-term risks, some analysts remain bullish on XRP’s long-term potential. If the 20-day EMA level becomes support, the altcoin could gain momentum and potentially break above the $3 mark. Meanwhile, predictions of XRP at $15 have circulated in the market.
Crypto analyst Ali Martinez has highlighted a significant breakout pattern on the XRP weekly chart. As per Martinez, XRP has broken out of a multi-year symmetrical triangle, which could set the stage for a parabolic move toward $15.
A symmetrical triangle is a continuation pattern that forms when an asset consolidates within converging trendlines. Historically, a breakout from such formations leads to a strong rally in the direction of the prevailing trend. Based on the height of the triangle, XRP’s measured move could target a 500% surge from its breakout point, aligning with Martinez’s $15 projection.
How is the Ripple-SEC Case Influencing XRP?
XRP’s price movement is also closely tied to the ongoing legal battle between Ripple and the United States Securities and Exchange Commission (SEC). The agency has dropped lawsuits against major crypto firms such as Uniswap, Coinbase, and OpenSea.
Market participants now speculate about a possible settlement in the Ripple case as well. Legal expert Jeremy Hogan said that the case could be resolved soon if Ripple and the SEC reach an agreement, dismiss the appeal, and forgo bringing the terms back to the trial court.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
