XRP Price Chart Suggests Potential for 75% Gains as SEC Lawsuit Against Ripple Ends

XRP has experienced a significant recovery, with the cryptocurrency gaining nearly 30% over the past two weeks, driven by a broader crypto market rebound and news of the U.S. Securities and Exchange Commission (SEC) ending its long-standing lawsuit against Ripple. Despite a few legal hurdles still facing the company, XRP's price chart is showing promising bullish signals, hinting at the potential for further gains in the coming weeks.

Technical Analysis: Symmetrical Triangle Points to Potential 75% Rally

XRP’s price action is currently forming a symmetrical triangle pattern, a well-known bullish continuation setup in technical analysis. This pattern often emerges after a strong uptrend, where the price consolidates within converging trendlines. It indicates that the market is awaiting a breakout, with the potential for the price to surge once it breaks above the upper trendline.

As of March 21, XRP tested the lower trendline of the symmetrical triangle and bounced, indicating a potential move toward the upper trendline, which is positioned around the $2.35 mark. If the price continues to follow this bullish setup, the breakout could target a price of $4.35 by June, representing a 75% gain from current levels.

Conversely, should XRP fall below the lower trendline, the bullish setup would be invalidated, and the price could potentially drop toward $1.28. This bearish scenario is derived by subtracting the maximum height of the triangle from the possible breakdown point at $2.35, suggesting a significant downside move if the market turns against the current pattern.

Ripple’s Legal Victory Adds Fuel to Bullish Sentiment

The positive technical outlook is further supported by recent developments in Ripple's ongoing legal battle with the SEC. On March 21, XRP saw a sharp 7.85% increase, reaching $2.41, following the news that the SEC had dropped its appeal against Ripple's partial victory in the lawsuit. This news injected optimism into the market and fueled the rally.

The momentum was also boosted by Bitnomial, a crypto exchange, which voluntarily dismissed its lawsuit against the SEC and launched the first-ever CFTC-regulated XRP futures contracts in the U.S. Futures contracts allow traders to speculate on XRP’s price without holding the asset directly, thus increasing liquidity and market activity, while reducing slippage and making large trades more manageable.

Legal Hurdle Still in Play: XRP's Restriction on Institutional Sales

Despite the positive technical and fundamental developments, Ripple still faces a legal challenge in the form of an injunction issued by Judge Analisa Torres. The injunction restricts Ripple from selling XRP directly to institutional investors, such as banks and financial institutions, which could limit Ripple’s ability to fully capitalize on institutional demand for the cryptocurrency in the U.S.

Crypto lawyer John Deaton highlighted the significance of this legal barrier, emphasizing that Ripple's future growth could be hindered by the restriction. He noted, “If Ripple obviously wants to be able to issue XRP to banks in America directly, I think the hang-up is that injunction. How do you get past that injunction?” This legal obstacle remains a key issue for Ripple as it continues to navigate the regulatory landscape in the U.S.

Conclusion

XRP's technical chart suggests that a 75% rally could be on the horizon, driven by the completion of a bullish symmetrical triangle pattern and positive market developments. The recent legal win against the SEC has bolstered investor sentiment, with the price rising sharply in the wake of the ruling. However, Ripple must still address the legal restriction preventing it from selling XRP to institutional investors in the U.S., a challenge that could impact its ability to fully leverage institutional demand. If the company can navigate these hurdles, XRP's upside potential remains significant, with a breakout toward $4.35 possible in the coming months.