- XRP may retest $2.83, with a $2.50 dip considered normal market fluctuation.
- Breaking $3.35 resistance could signal a breakout, potentially targeting $4.
- Ripple’s political influence and strong finances could impact SEC case resolution.
XRP, the cryptocurrency backed by Ripple Labs, is currently experiencing a period of consolidation, as analysts closely monitor its price action. According to EGRAG CRYPTO, the asset is trading within a defined zone, making it crucial for investors to wait for key technical signals before taking any major positions.
A retest of the $2.83 level is expected, and there may be a brief dip to $2.50, which would be a normal market fluctuation. If XRP closes above the key $3.40 level, the current market outlook would need to be reconsidered.
Key Resistance and Bullish Potential
Meanwhile, CryptoWZRD’s analysis indicates that XRP must surpass the $3.3 level reached on January 20 to trigger a retest of the falling wedge’s upper trendline. This move would require a modest 4% increase from the current price of $3.17. Should XRP breach the $3.35 resistance, it could signal a potential breakout.
Such a development might set the stage for a rally, with targets potentially reaching the psychological $4 mark. According to CryptoWZRD, an 81% surge from the recent low of $2.20 aligns with the resistance level of the falling wedge, strengthening the possibility of a major price move. If XRP manages to break above this resistance, it could only require a 26.18% rise from current levels to hit $4.
Legal Struggles Continue to Shape XRP’s Future
XRP’s market trajectory is also heavily influenced by its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Ripple Labs faces challenges as Better Markets, a nonprofit, has filed an amicus curiae brief supporting the SEC’s appeal against a pivotal 2023 court ruling.
The ruling determined that Ripple’s XRP sales to retail investors did not violate U.S. securities laws, but the SEC and Better Markets argue that this decision misapplied the Howey Test. They contend that Ripple’s marketing efforts, which include public outreach and reports, created clear profit expectations for buyers, thus satisfying the criteria for an investment contract.
Ripple’s Financial Position and Political Speculation
Despite the ongoing legal hurdles, Ripple’s financial standing remains strong. Since Donald Trump’s re-election, Ripple’s XRP holdings have surged in value by $125 billion. CEO Brad Garlinghouse met with Trump, fueling speculation about the company’s political influence and the potential for a resolution to the SEC case.
Furthermore, the appointment of Mark Uyeda as Acting SEC Chair has prompted optimism in the crypto community, as he is seen as more favorable toward the industry compared to his predecessor, Gary Gensler.