XRP May Have a New Catalyst That Could Push Its Price Higher Following the Ongoing Consolidation Phase

Ripple (XRP) was trading at $2.67 on Friday, where it has remained for the past few days. This price is approximately 50% above its lowest level this month.

Cryptocurrency XRP may have a new catalyst that could push its price higher following the ongoing consolidation phase.

On Friday, XRP was trading at $2.67, a price it has maintained for the past few days. This price is about 50% higher than the lowest point XRP reached earlier this month.

XRP could experience a strong bullish breakout following a major announcement made by Coinbase CEO Brian Armstrong regarding the SEC lawsuit.

Coinbase has reached an agreement with SEC staff to dismiss the litigation against the company. If approved by the commission next week, the decision will lead to the dismissal of charges against the exchange.

The SEC had accused Coinbase of offering unregistered securities, operating as an unregistered broker-dealer, and providing staking solutions. Staking is considered an unregistered security by the agency, subject to its regulation.

The conclusion of the Coinbase lawsuit bodes well for Ripple Labs and the price of XRP. This outcome increases the possibility that the SEC may drop its appeal against Ripple, particularly given the crypto-friendly stance expected to be adopted by the Trump administration.

Since 2020, Ripple and the SEC have been engaged in a legal battle, stemming from the regulator's accusation that Ripple Labs sold unregistered securities. Judge Analisa Torres ruled that XRP was not a security when sold to exchanges but found that its institutional sales violated securities laws. She ordered Ripple to pay $125 million, which was significantly lower than the SEC's initial demand of $2 billion.

Both parties filed appeals, but the SEC may now withdraw its case. Trump has nominated Paul Atkins, an official known to be crypto-friendly, as the next SEC chair. Most analysts anticipate that he will drop the appeal against Ripple.

XRP price analysis

According to the weekly chart, XRP has lacked a clear direction over the past two months. This price movement is consistent with most altcoins, which have also experienced pullbacks during this period.

On the positive side, XRP has remained above the crucial support level at $1.9855, which marks the highest swing in April 2021. This price also coincides with the upper boundary of the cup-and-handle pattern, a well-known bullish indicator.

Moreover, XRP continues to trade above the 50-week moving average and the overshoot point of the Murrey Math Lines tool.

As a result, Ripple may stage a strong comeback, with an initial target of $3.40, which corresponds to the highest swing from November. This target represents a 27% increase from the current level. A breakout above this level could signal further upside, potentially pushing the price toward $5.