Is XRP Gearing up for a Historic Breakout?

XRP has seen a significant rebound in its price following Ripple's recent win against the United States Securities and Exchange Commission (SEC)

Ripple’s [XRP] cryptocurrency recently enjoyed a 30% rally in July 2024, thanks to aggressive buying by the bulls. This marked XRP’s largest monthly return since July 2023, when the coin was finally declared a non-security by a U.S. District Judge.

Now, as XRP’s price action continues to be closely monitored, one popular trader has identified a pattern on the coin’s chart that suggests XRP is primed to explode higher.

Is XRP gearing up for a historic breakout?

Following Ripple’s recent win against the United States Securities and Exchange Commission (SEC) in the crypto giant’s long-running feud with the top securities regulator, XRP has seen a significant rebound in its price. The coin is up over 3% in the past week alone, with its current price sitting at $0.57.

A technical analysis of XRP’s monthly chart shows an emerging bullish triangle pattern. This is a popular technical analysis chart formation that helps traders gauge market sentiment and spot emerging trends. It forms when an asset’s price trades in a narrow range and is often a sign of an imminent major upward price breakout.

$XRP is gearing up for the biggest breakout in it’s entire price history on the monthly ? pic.twitter.com/ix9OUSmeTx

The triangle pattern shows that more investors are scooping up XRP coins, and there is a good chance that it will break out above the upper trend line, triggering a stratospheric price rally.

Some pundits often criticize such technical chart patterns as unreliable as past performance is no guarantee of future returns. Nevertheless, it’s hard to ignore. With so many enthusiasts believing in the charts, the bullish breakouts often become a self-fulfilling prophecy.

The bullish posturing on the charts also coincides with the Ripple-SEC lawsuit finally reaching its end. According to some analysts, this newfound legal clarity will help Ripple forge major global partnerships and boost the institutional adoption of its tech. Moreover, it could help XRP secure spot exchange-traded funds (ETFs) on U.S. exchanges.

All eyes on $1 XRP

Analyzing XRP’s future price prospects, another seasoned crypto analyst—going by the online alias Doctor Profit on X—has compared the current market patterns to those of 2017, just before the crypto’s parabolic rise.

As per Doctor Profit, the constant rejection of a persistent resistance line could lead to a mega rally, with a potential price target well above the coveted $1 mark by early 2025.

The elite trader stated:

“If we hit another rejection at $0.72, don’t panic. The breakout is inevitable, and I expect targets way above $1 latest by Q1 2025. When XRP pulls a 2017 move and hits the same Fibonacci levels we have seen in 2017, we’re looking at a potential top of $16.”

To this end, Doctor Profit shared two ambitious price targets for the seventh-largest cryptocurrency by market cap.

“Best case: $16-$20,” the analyst noted. “Worst case: $4-$7.”

That being said, it remains to be seen whether XRP’s price will continue to rise in the coming days or if it will eventually pull back from its current highs. Traders are advised to closely watch XRP’s price action over the next few days and make their trades accordingly.

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