XRP (XRP) looks poised to rise 60% in the coming days after breaking out of its prevailing symmetrical triangle pattern.
The upside outlook aligns with a series of developments in Ripple’s ongoing legal battle with the US Securities and Exchange Commission (SEC).
XRP price eyes $4 in “next couple of days”
Symmetrical triangles are considered bullish continuation patterns when the price breaks above their upper trendlines with a rise in trading volumes. That appears to be the case with XRP, which on Jan. 11 entered the breakout stage of its triangle pattern.
A symmetrical triangle breakout target is determined by adding the pattern’s maximum height to the breakout point. Applying the same rule on XRP’s chart brings its upside target to around $4.
The cryptocurrency could reach the level in the “next couple of days,” according to independent market analyst World of Charts.
As of Jan. 12, XRP was showing signs of retreating toward the triangle’s lower trendline at around $2.37.
A decline below this wave support risks invalidating the symmetrical triangle breakout scenario, while raising the likelihood of falling toward the pattern’s lower trendline.
This downside target aligns with the 50-12H exponential moving average (50-12H EMA; the red wave) at around $2.30.
However, holding above the upper trendline will likely keep the probability of XRP reaching its $4 symmetrical triangle target high.
Ripple notches another small win against SEC
XRP entered its symmetrical triangle breakout stage just hours after Ripple’s small victory in its ongoing legal battle versus the SEC.
On Jan. 11, a federal judge approved an administrative motion to file certain documents under seal, ensuring the confidentiality of sensitive information in the ongoing legal battle.
Specifically, the judge agreed to seal records containing confidential, sensitive, and personally identifiable information tied to Ripple’s summary judgment motion.
The ruling comes as the SEC faces a Jan. 15 deadline to file its appeal-related opening brief, challenging key rulings in the Ripple case.
In its October Notice of Appeal, the SEC revealed plans to contest the Summary Judgment, including Judge Analisa Torres’ decision that XRP’s regular sales did not meet the Howey Test’s criteria. This appeal has contributed to XRP’s price volatility since July 2023.
Despite leadership changes with SEC Chair Gary Gensler departing on January 20 and former Commissioner Paul Atkins expected to take over, the agency appears committed to pursuing the appeal.
In December 2024, Gensler promoted senior crypto-enforcement lawyers, potentially to ensure continuity in the case.
However, legal experts anticipate that Atkins could reverse the SEC’s aggressive stance on crypto, fueling cautious optimism among investors.
“Paul favors free markets and hates over-regulation — which should be a net-positive for the cryptoverse,” said John Reed Stark, the former chief of the SEC Office of Internet Enforcement said after Donald Trump’s election win in November, adding:
“Paul has also always believed that SEC Enforcement can be too heavy handed at times, lacks consistency and desperately needs significant reforms – so expect reigning in SEC Enforcement to be a top priority for Paul.”
Related: XRP price preps for ‘powerful move’ above $2.90 as sentiment metrics signal optimism
XRP price could reach $4 as optimism grows that incoming SEC leadership under Atkins may adopt a more favorable stance toward Ripple and crypto regulation, reducing legal uncertainties.
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.
