The swing price broke out of a symmetrical triangle on Tuesday, rising nearly 5.5%, close to the $0.54 level. However, supplier congestion in the area led to profit-taking, which pushed the coin down. As of writing, the swing price is hovering around $0.5259, up 1.7% on the day, with a 24-hour trading volume of $1.29 billion, according to data from CoinMarketCap.
Since the beginning of April, the swing price has been showing significant volatility, caused by intense pushes and pulls between buyers and sellers. As a result, the price has been hovering inside the symmetrical triangle, unable to develop any directional bias. However, yesterday's breakout opens the door to a potential breakout at $0.58.
It should also be remembered that the XRP price always reacts to any developments in the SEC v. Ripple case. In the latest development, Congressman Warren Davidson introduced a bill to Congress proposing to fire the Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler.
SEC reorganization will 'correct long-standing abuses' - Congressman Davidson
The San Francisco-based blockchain company has been battling the SEC since December 2020, and the lengthy litigation may be coming to an end, with XRP supporters hoping the balance will tip in favor of Ripple.
The crypto community, especially the XRP Army, has long considered Gensler unfit to lead the commission because he unfairly targets crypto companies and argues that all cryptocurrencies except Bitcoin are securities.
These views are also supported by Congressman Warren Davidson, who has introduced a bill in Congress to fire SEC Chief Gary Gensler.
Congressman Davidson said via Twitter on Tuesday that he is calling for a restructuring of the SEC to "correct a long series of abuses" and change the position of chairman to an executive director reporting to the board. The previous SEC chair will…
Given recent developments, this seems like the perfect time for Judge Torres to rule on the Ripple v. SEC lawsuit, which, if Ripple wins, would prove that Gensler’s departure may be necessary.
If this happens, it could not only lead to an increase in the value of XRP, but also trigger a bullish trend in the entire cryptocurrency market.
Ripple price could take advantage of symmetrical triangle to move up to $0.58
XRP price action between March 29 and April 17 formed a symmetrical triangle on the daily chart (see chart below). This means that price volatility is decreasing while forming higher lows and lower highs. The chart pattern suggests that the price could break above 9.7% in either direction.
The price broke out of the dominant chart pattern on April 17 with the day’s candle closing above the resistance line of the triangle at $0.5231. This confirmed a bullish breakout of the triangle with the next resistance at the $0.54 level.
Above there, the cross-border payments cryptocurrency could look to break above the $0.55 psychological level to reach the current chart pattern’s bullish target of $0.5730. Higher still, the next logical move would be a return to the $0.58 psychological level, which would represent an upside of 10% relative to the current price.
Supporting the bullish case for Ripple is the uptrending Simple Moving Average (SMA). In addition, the 100-day SMA just crossed above the 200-day SMA on April 15, forming a bullish crossover. A bullish crossover is a technical pattern that occurs when a faster moving average (in this case, the 100-day SMA) rises above a slower moving average (in this case, the 200-day SMA). Such a crossover is often interpreted as a bullish scenario, indicating a buy signal with the expectation that the uptrend will continue.
The same applies to the Relative Strength Index (RSI), which is in the positive territory. The price strength at 60 suggests that the direction of least resistance is towards the north.
Moreover, the Moving Average Convergence Divergence (MACD) indicator moved up and crossed the zero line in the positive zone. This suggests that market conditions are favorable for gains.
On the other hand, the downtrend MACD suggests that buying momentum is fading, which could lead to a continuation of the correction. Therefore, Ripple price could drop back into the interior of the symmetrical triangle and continue consolidating inside it for a few more days.
However, a break below the support line of the triangle will trigger passive selling orders that could cause XRP to first fall to the $0.50 psychological level, then to the $0.47 support level, and finally to the triangle’s bearish target of $0.4565. Calculated from the current level, the total loss will amount to 13.13%.
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