XRP price remains pressured this month as investors await the SEC vs Ripple case conclusion on Wednesday. It continues in a deep bear market after a ~40% fall from its highest point this year. This article explains why the Ripple price may stage a strong comeback in the next few weeks.
XRP Price Technical Analysis
The 3D chart shows the XRP value dropping in recent weeks as it moved from a high of $3.4097 to the current $2.1. On the positive side, the coin has remained above the 50-day Exponential Moving Average (EMA), a sign that bulls are in control.
Furthermore, the XRP price has formed a bullish pennant pattern, a popular bullish indicator. This pattern consists of a tall vertical line and a triangle. In most cases, this pattern triggers a strong bullish breakout when the two lines of the triangle near their confluence level.
The Relative Strength Index (RSI) and the Percentage Price Oscillator (PPO) have continued falling and are nearing the oversold level. Therefore, the coin will likely remain under pressure as the two lines in the bullish pennant pattern approach their convergence point.
Ultimately, the coin will bounce back and retest the crucial resistance point at $3.4097, the highest swing this year, which is about 62% above the current level. Movement above the YTD high could indicate further gains, potentially reaching the psychological barrier of $5.
However, a decline below the crucial support level of $1.6225, Monday’s lowest swing, will negate the bullish outlook.
READ MORE: XRP Price Prediction: Ripple Technical and On-Chain Analysis
Top Catalysts for the Potential Ripple Surge
Three key potential catalysts may push the XRP price higher. First, Fed officials have hinted that the bank is ready to intervene as the economic crisis continues. Leaders such as Susan Collins and Christopher Waller mentioned that the bank possesses intervention tools, like interest rate cuts and quantitative easing.
Second, the SEC vs Ripple case will officially end on April 16. This serves as a significant catalyst by eliminating a lingering cloud surrounding Ripple Labs in recent years. It will help the company make deals with some of the top companies in the US as it seeks to be a better alternative to SWIFT Network.
Additionally, the SEC is increasingly likely to approve a spot XRP ETF, which would lead to more inflows from institutional investors.
READ MORE: ‘Buckle Up’ – Altcoins Like Kaspa, Onyxcoin, Pepe Wait for a Fed ‘Bailout’
