Following a raft of XRP-related news recently, the XRP price shows signs of regaining momentum. This could lead to a breakout from the current long-term pattern.
Last week, a United States judge issued a summary judgment in the LBRY vs SEC case, deciding to limit the Securities and Exchange Commission’s (SEC) oversight in secondary crypto markets. This could have a positive impact by establishing a precedent for securities law, which could then be used in the Ripple vs SEC ruling, as the latter uses the ambiguous “secondary market” terminology in its Ripple case.
Furthermore, an article was published by the London-based IG bank. It deals with the Ripple Labs vs SEC case, stating that if positive, the outcome could cause the XRP price to skyrocket and benefit the cryptocurrency market as a whole.
Crypto Law founder and Ripple advocate John Deaton expressed reservations about the SEC commissioner’s statement that their case is weak.
Despite these new pieces of information, there are no definite XRP news in regard to the resolution of the XRP vs SEC case.
A positive outcome for Ripple will send an encouraging message to Fintech companies, attracting them to the United States as a result. The inverse outcome will almost certainly result in a mass exodus of crypto companies and talent.
Upward Momentum Still Intact
The price of XRP has been falling below a long-term declining resistance line since April 2021. As a result of the decline, XRP reached a minimum price of $0.287 in June 2022.
Following that, the price began to rise, and in Sept., it broke through the resistance line due to a bullish divergence in the weekly RSI (white line). But, its rising trend could not be sustained, and XRP is now trading below its breakout level.
However, the outlook for the future remains positive. The weekly RSI has created another bullish divergence (green line), similar to the one that preceded the breakout. As a result, the price may still rise to the $0.580 horizontal resistance level. Then, if it moves above it, it may rise to an average price of $0.900.
A weekly close below $0.300, on the other hand, would be bearish and could push the crypto assets price down to $0.200.
XRP/USDT Weekly Chart. Source: TradingView
XRP Price Prediction for Feb
The technical analysis of the daily chart reveals that the movement of the XRP price has been constrained by a symmetrical triangle since June 2022. The symmetrical triangle is considered a neutral pattern. As a result, both a breakout and a breakdown remain possible.
However, the price movement and indicators show several bullish signs. To begin, the price of XRP produced a bullish hammer candlestick on Jan. 2 (black icon). The candlestick sparked the current upward trend and kept the triangle from collapsing. The XRP price then reclaimed the horizontal $0.385 support zone and confirmed it as such (green icon).
The XRP price has fallen in the last 24 hours after being rejected by the triangle. The daily RSI, on the other hand, has produced a hidden bullish divergence (green line). This is a strong indication of trend continuation, which may result in a breakout. If that happens, $0.505 will be the next level of resistance. This is a roughly 30% increase from the current price.
A close below $0.385 would, however, invalidate the bullish XRP forecast and send the price back down to $0.340.
XRP/USDT Daily Chart. Source: TradingView
Finally, the most likely XRP price prediction for Feb. is a breakout from the triangle followed by an increase to $0.505. Positive XRP news could catalyze this movement. On the other hand, a daily close below $0.382 would invalidate this bullish outlook and send XRP back down to the $0.340 support level.
For BeInCrypto’s latest crypto market analysis, click here.
BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.