XRP Price Breaks Out Above Descending Trendline, Targeting $5

XRP price has exhibited a breakout above a descending trendline that has been in effect for the long-term indicating the possibility of another bullish run.

The recent legal case between Ripple and the SEC has had a massive impact on the XRP price.

This is capable of thrusting up prices, with experts setting an average target of around $5.

However, concerns over the nature of the rally and the lack of institutional involvement have emerged.

The outcome of the Ripple vs. SEC lawsuit has had a significant bearing on the trajectory of XRP price, according to market analysis. As the legal case reached its conclusion, technical indicators suggest a breakout that could propel the asset to new highs, despite the absence of major institutional accumulation.

This uptrend has escalated since the recent development.

Highlighting this bullish phase, Analyst Dark Defender pointed out how the breakout signaled massive buying.

This is because the cross signaled the bulls’ predictions, especially after a long-term descending trend was broken. A strong green candlestick on the 4-hour chart confirmed the breakout, signaling substantial buying pressure.

This signaled that the bears were overwhelmed by the bulls, leading to a breakout from a long-term trendline.

Furthermore, Fibonacci retracement levels suggest strong support for further gains. Analysts anticipate XRP price will move past $3.40 and $3.78 before reaching the $5 target.

The momentum shift follows a prolonged consolidation phase, aligning with the conclusion of the Ripple vs. SEC lawsuit, which has been ongoing for over five years.

This signals that a significant barrier to XRP’s potential growth has been removed.

Highlighting this bullish structure, market analysts have outlined an Elliott Wave structure projecting a continued XRP price increase. According to this analysis, the asset is in an impulsive wave pattern, which suggests further gains.

The breakout from the trendline supports the projection of a strong bullish phase.

Concerns Over Whale Accumulation and Leverage

While the bullish outlook remains strong, analyst Ali Martinez pointed out concerns regarding the nature of the Ripple token rally.

Data from Santiment suggests that large whale investors did not contribute to the price increase. The absence of substantial whale accumulation raises questions about the rally’s sustainability.

Further analysis indicates that open interest in XRP futures increased by $200 million, signaling a surge driven by leverage rather than organic buying.

When leverage dominates price movements, the market may experience heightened volatility, leading to potential corrections.

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