XRP Eyes 60% Gain Ahead of Gary Gensler Resign

Ripple’s native cryptocurrency, XRP, is gaining significant attention as it gears up for a potential 60% price surge, driven by bullish technical patterns and SEC’s chair Gary Gensler’s resignation on January 20. 

Following a significant breakout from a symmetrical triangle formation and 40 days of investors re-accumulating, the XRP token is poised for a major rally ahead.

XRP is ready to break out. Source: TradingView

Technical analysts see the breakout as a bullish sign, highlighting XRP’s potential to hit $4 soon. Symmetrical triangles are often considered continuation patterns that signal further gains when prices break the upper trendline with increased trading volumes. As of January 13, XRP was trading around $2.54 and showed strong bullish momentum despite minor pullbacks, according to Brave New Coin’s XRP Liquid Index.

Source: Brave New Coin’s XRP Liquid Index

The breakout target, calculated using the triangle’s height, gives XRP an ambitious upside target of $4. Market analyst World of Charts expressed confidence in this prediction, noting:

 “The cryptocurrency could reach the level in the ‘next couple of days.’”

Ripple’s Legal Battle Update — Key Documents Sealed

The potential price rally coincides with Ripple’s recent legal victory in its ongoing battle with the U.S. Securities and Exchange Commission. On January 11, a federal judge approved a motion to seal certain sensitive documents, ensuring the confidentiality of Ripple’s summary judgment filings.

This ruling adds another layer of complexity to the SEC’s case, especially as the regulatory agency faces a critical January 15 deadline to file its opening brief for an appeal. The appeal seeks to overturn Judge Analisa Torres’ ruling that XRP’s regular sales did not meet the Howey Test’s criteria, a decision pivotal to the ongoing legal dispute.

Analysts’ optimism is also tied to upcoming changes in SEC leadership. As Chair Gary Gensler is set to depart on January 20, the former Commissioner Paul Atkins is ready to take over. Legal experts suggest Atkins’ market-friendly stance could reduce the regulatory pressure on Ripple and cryptocurrencies in general.

An aggressive approach to crypto regulation marked Gensler’s tenure, but his successor, Atkins, is expected to bring a more balanced perspective. John Reed Stark, former chief of the SEC Office of Internet Enforcement, shared his thoughts on Atkins:

“Paul favors free markets and hates over-regulation — which should be a net-positive for the cryptoverse. 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.”

XRP Trading Volume Surged Over 80% — Sign of Major Bull?

On January 12, XRP’s trading volume surged by over 80%, reaching $8.98 billion, according to CoinMarketCap data. More than $1 billion of this activity came from Korea’s Upbit exchange. This spike in trading coincided with a 9% price increase, with XRP hitting $2.60 before settling slightly lower.

The rising trading volume reflects growing interest in the cryptocurrency, suggesting that more capital is flowing into XRP amid heightened market optimism. Peter Brandt, a veteran trader, pointed out in a recent chart that XRP has resolved a bullish pennant pattern, signaling further potential gains if the breakout holds steady.

However, analysts caution that XRP must maintain its position above the triangle’s upper trendline to keep its bullish momentum intact. Falling below $2.37 could invalidate the breakout and push the price toward $2.30, aligning with the 50-12H exponential moving average.

Still, it’s good news for XRP holders, and the year ahead looks to be one of the best on record for Ripple and for XRP itself.