The crypto markets thrived after Donald Trump was elected president of the U.S. Moreover, big changes are expected to happen, including with the SEC, which is believed to impact its approach to cryptos positively. In an interesting move, the XRP price underwent a significant uptick, rising over 40% during the weekend after breaking the multi-year rising parallel channel. Although bears attempted to squeeze some profits, the bulls are back to squash them and elevate the levels higher.
The potential reasons attributed to the surge include the probable resignation of the SEC’s Chair Gary Gensler, speculation of a change in the regulatory tailwind following the induction of Trump’s administration, an increase in the whale activity and importantly a massive technical breakout. The XRP price has broken the six-year-long symmetrical triangle pattern, which indicates a continued ascending trend with a sustained upward momentum.
Historically, these type of breakouts is followed by a huge influx of buying volume suggesting the traders may have become optimistic about the next price action. However, the question arises of whether the price can go 2x from here to mark a new ATH above $5.
Similar to the 2017 breakout, the XRP price has broken from the consolidation that it maintained since rejection from the ATH in 2017. Further, the price underwent a rise of over 4,500% followed by a small consolidation and a rise of over 1500% to reach the ATH at $384. Now that the price has triggered a similar breakout, the price is expected to undertake a similar price action, but the question arises whether a 4,500% + 1,500% to reach a 3-digit figure.
Firstly, the market capital of XRP was less than $300 million during the 2017 breakout which increased beyond $127 billion in 2018. However, the breakout occurred when the market capitalisation was around $30 billion which has already doubled. Therefore, with such a large market capitalisation, the probability of a similar rise could be pretty burdensome.
Meanwhile, a breakout from the symmetrical triangle does have a positive impact on the token that may result in a similar rise as before and probably mark a new ATH above $10.
