XRP has faced a nearly 15% decline in October, primarily due to the United States Securities and Exchange Commission’s (SEC) renewed appeal in the ongoing lawsuit against Ripple. Despite this downturn, some analysts perceive the drop as a potential buying opportunity for investors. Analyzing historical price patterns and notable whale accumulation suggests that XRP could be on the brink of a significant rally in the upcoming months. Analyst CryptoBull has drawn attention to the remarkable similarities between XRP’s current price behavior and the trajectory seen during the 2017 bull market.
While in that phase, XRP demonstrated a consolidation phase within a symmetrical triangle pattern prior to an explosive breakout that resulted in a staggering rally of 66,240%, reaching a record high of $3.31. As of October 2024, XRP appears to be nearing the apex of a similar triangular formation on its monthly chart.
These types of patterns often precede powerful directional movements; should XRP maintain its historical trend, a breakout could herald considerable gains for investors. The apex of the current symmetrical triangle stands around $0.52. Should the price push above the upper trendline from this level around June 2025, the pattern’s potential upside target could be near $23.40, indicating a spectacular increase of over 4,200% in the next few years. However, caution is warranted as the SEC’s appeal in the Ripple lawsuit represents a potential significant obstacle for XRP’s bullish prospects.
If the agency convincingly argues that XRP’s secondary sales to retail investors were in violation of US securities laws, it might lead XRP to breach the lower trendline of its existing symmetrical triangle pattern. This crucial level aligns with its 50-month exponential moving average (50-month EMA) and the 0.236 Fibonacci retracement line.
In the scenario of a breakdown, the subsequent price target is around the 0.0 Fibonacci line at $0.11, reflecting a stark decline of 78.25% from current price levels. All readers are reminded that this article does not constitute investment advice or recommendations. Every investment and trading decision carries inherent risk, and it is crucial for individuals to conduct thorough research before proceeding with any trades..