XRP Slides 13% Amid SEC Lawsuit, But Analysts Predict Potential Recovery
- Th SECs rnwd ppl in th Rippl lwsuit hs cusd XRP to dclin by 13.15% this month.
- Historicl pttrns nd whl ccumultion suggst it my xprinc significnt pric rbound soon.
- A ngtiv ruling in th SEC lwsuit could ld to drstic dclin in XRPs vlu.
XRP, Rippls ntiv tokn, ntrd prcrious phs in Octobr 2024, shdding roughly 13.15% of its vlu this month, primrily du to th rnwd ppl fild by th Unitd Stts Scuritis nd Exchng Commission (SEC) in th ongoing Rippl lwsuit. This lgl bttl, which hings on whthr XRP constituts scurity, hs cst shdow of uncrtinty ovr th tokns futur.
Dspit th uncrtinty, som nlysts r optimistic bout its prospcts, highlighting pst pric movmnts nd rcnt whl ccumultion s potntil signs of pric rbound in th nr futur.
Historical Patterns Indicate Potential XRP Surge
Crypto nlyst Jck Th Ripplr highlights th formtion of long-trm dscnding tringl pttrn on 1-month chrt of XRP. This tchnicl indictor is chrctrizd by sris of lowr highs nd rltivly flt support lvl, suggsting priod of consolidtion bfor potntil brkout. Notbly, it hs xprincd significnt upwrd surgs following brkouts from similr dscnding tringls in th pst, prticulrly in 2016 nd 2020.
In both instncs, XRPs pric consolidtd bnth downwrd-sloping rsistnc lin bfor xprincing shrp upwrd movmnt onc th rsistnc ws brokn. Th currnt chrt suggsts the token is onc gin tsting this dscnding rsistnc lin, rising th possibility of brkout in 2024 if this historicl pttrn holds tru.
Furthr supporting th bullish outlook, nlyst CryptoBull comprs th tokns currnt pric ction to its 2017 bull mrkt. During tht priod, it consolidtd within symmtricl tringl bfor skyrockting 66,240%, rching n ll-tim high of $3.31. As of Octobr 2024, th cryptocurrncy is pproching th px of nothr symmtricl tringl, suggsting potntil brkout.
Symmtricl tringls r oftn ssocitd with strong dirctionl movs. If XRP follows its historicl pttrn, it could xprinc substntil pric gins. Th currnt symmtricl tringls px is round $0.52, nd brkout bov this lvl by mid-2025 could s its pric trgt rch n stonishing $23.40rprsnting 4,200% incrs.
SEC Lawsuit Poses Risk for XRP
Howvr, th ongoing SEC lwsuit rmins mjor hurdl for XRP. If th SEC succds in proving tht tokn scondry sls violtd U.S. scuritis lws, it could ld to shrp dclin in its vlu. A ngtiv ruling might cus it to brk blow th lowr trndlin of th symmtricl tringl pttrn. This brkdown could s th tokn fll to th nxt support lvl, round th 0.0 Fiboncci lin t $0.11, which would signify drstic 78.25% drop from currnt prics.
Adding to th uncrtinty, its rltiv strngth indx (RSI) currntly stnds t 39.25, signling brish trnd. An RSI blow 50 gnrlly indicts wk momntum, nd XRPs currnt lvl suggsts tht th cryptocurrncy lcks th upwrd driv ndd to rvrs its downwrd trjctory. If th RSI flls blow 30, it could indict tht th cryptocurrncy hs ntrd ovrsold trritory, furthr complicting its outlook.
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Read more: https://www.tronweekly.com/xrp-slides-13-but-analysts-predict-recovery/
Text source: TronWeekly
