The Ripple (XRP) price is currently trading inside a symmetrical triangle that has been in place since June 2022. However, recent price action suggests that an eventual breakout from this pattern is the most likely scenario. Since the beginning of this year, XRP has tried to break out several times, and if it is successful in doing so, the resistance level at $0.43 is the next hurdle it will have to overcome.
On March 3, Ripple Labs CEO Brad Garlinghouse made a statement, emphasizing the need for the US government and financial institutions to embrace cryptocurrency. He argued that technological innovation and growth would suffer if fintech and crypto companies left the United States. Similarly, Brook Entwistle, a Ripple executive, affirmed the utility of central bank digital currencies (CBDC), indicating that Ripple was in talks with various banks about potential CBDC launches.
Although there was no news about the ongoing Securities and Exchange Commission (SEC) lawsuit against the firm, it remains a crucial factor that will shape Ripple’s future.
As we approach the end of March, the XRP price is expected to make a decisive move outside the confines of its current pattern. The resistance and support lines of the symmetrical triangle have been validated several times, and given the weakening of lines each time they are touched, a breakout from the triangle seems very likely. Additionally, bullish divergence on the daily RSI suggests the possibility of a bullish reversal, and on March 3, the XRP price created a long lower wick.
If the XRP price does break out of the symmetrical triangle, the next closest resistance level would be at $0.43, while a breakdown could trigger a fall to $0.30. The end of the pattern is projected for the end of the month, so we can expect a decisive move to occur by then.
A more short-term analysis on the four-hour chart shows that XRP has been trading inside a descending parallel channel since January 23, which usually contains corrective movements, indicating an eventual breakout. The XRP price is trading in the upper portion of this pattern, further solidifying the possibility of a breakout. Additionally, the slope of the channel coincides with that of the long-term resistance line, suggesting that a breakout from the channel could lead to a breakout from the resistance line.
To summarize, the most likely scenario for the XRP price in the near future is a breakout from the long-term triangle and an increase to $0.43. However, a breakdown below the support line could invalidate this outlook and trigger a fall to $0.30.
In conclusion, crypto investors should keep an eye on Ripple and XRP as the ongoing legal battle with the SEC will significantly impact their future. However, despite the obstacles, the XRP price is looking strong and could potentially see significant growth in the future.
