XRP can have a new catalyst that may push its price more after the ongoing consolidation stage.
Ripple (XRP) was trading at $ 2.67 on Friday, where it has been built for the last few days. This price is about 50% above its lowest level this month.
The XRP may stage a strong rapid breakout after a major announcement about the SEC trial by CEO of Coinbase, Brian Armstrong.
The coinbase has reached an agreement with SEC employees to dismiss the litigation against the company. If approved by the Commission next week, the decision will dismiss the allegations against exchange.
The SEC accused the coinbase of offering unregistered securities, working as an unregistered broker-dealer and providing staking solutions. The agency prevents an unregistered security under its regulation.
The ending of the coinbase suit is a positive development for the price of Ripple Labs and XRP. This result increases the possibility that SEC can leave its appeal against Ripple, especially when the agency is expected to take a more crypto-friendly stance under the Trump administration.
Ripple and SEC have been entangled in a legal battle since 2020, when the regulator accused Ripple Labs of selling unregistered securities. Judge Analysa Torres ruled that XRP was not safety when the XRP was sold for exchange, but determined that its institutional sales violated securities laws. He ordered Ripple to pay $ 125 million, which is much lower than SEC’s initial $ 2 billion demand.
Both sides filed an appeal, but the SEC could withdraw its case. Trump has named Paul Atkins as a Crypto-friendly officer, the next SEC chair. Most analysts hope that he will give up the appeal against Ripple.
XRP price analysis
The weekly chart suggests that XRP lacks clear direction in the last two months. This price movement aligns with most altcoins, which has also experienced pullbacks during this period.
On the positive side, XRP has been above the most swing at $ 1.9855 in April 2021 above the significant support level. This price also marked the upper range of the cup-end-handle pattern, a famous rapid indicator.
Additionally, the XRP continues to trade above the moving average of 50-week and overshoot points of Murray Math Lines Tools.
As a result, Ripple may staging a strong return, with an initial target of $ 3.40, the highest swing from November. This target represents an increase of 27% from the current level. A breakout above this level may indicate the opposite, possibly push the price towards $ 5.
