XRP price falls 15% in 3 days — Will Ripple’s legal setback mark the bottom?
2024.10.05 04:58
XRP (XRP) has declined by nearly 15% so far in October, with its losses driven primarily by the United States Securities and Exchange Commission’s (SEC) renewed appeal in the Ripple lawsuit.
However, for some analysts, XRP’s drop might be a buying opportunity rather than a cause for concern. More specifically, the historical price patterns and recent whale accumulation suggest XRP price could be poised for a massive rally in the coming months.
XRP price eyes symmetrical triangle breakout
Analyst CryptoBull highlighted a striking resemblance between XRP’s current price behavior and its 2017 bull market trajectory.
Source: X
At that time, XRP consolidated within a symmetrical triangle pattern before breaking out and rallying by 66,240% to a record high of $3.31. As of October 2024, the asset is nearing the apex of a similar triangle structure, as seen on its monthly chart.
Such formations often precede strong directional moves, and if XRP follows the historical precedent, a breakout could lead to substantial gains.
In the case of symmetrical triangles, especially within an uptrend, breakouts tend to be bullish, with price gains matching the triangle’s height at its widest point.
For XRP, the apex of the current symmetrical triangle is around $0.52. Should the price break above the upper trendline from this level sometime around June 2025, the pattern’s potential upside target is near $23.40, representing a staggering increase of over 4,200% in the coming years.
XRP price headwinds and technicals
The SEC’s appeal in the Ripple lawsuit could pose a significant headwind for XRP’s bullish setups, particularly if the agency successfully argues that XRP’s secondary sales to retail investors violated US securities laws.
Source: Fred Rispoli
In that case, XRP could potentially break below the lower trendline of its prevailing symmetrical triangle pattern, a level further coinciding with its 50-month exponential moving average (50-month EMA; the red wave) and the 0.236 Fibonacci retracement line.
XRP/USD monthly price chart. Source: TradingView
In the event of a breakdown, the next price target is around the 0.0 Fib line at $0.11, down 78.25% from the current price levels.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
