Ripple price eyes 10% surge as legal expert cautions on the disposition of XRP assets

Jeremy Hogan on advantages of not liquidating XRP held for over a year

Ripple (XRP) price is following the rest of the altcoins north amid hype relating to spot BTC ETFs. With the payments token trending, a legal expert, Jeremy Hogan, has advised crypto holders to exercise caution regarding crypto tax as they optimize for profit in the expected bull run.

Sharing guidance for investors planning to increase their tax efficiency amid the expected crypto bull market, the legal expert, who is a Partner at ‘Hogan & Hogan’, said investors must consider tax obligations on their cryptocurrency investment from the period of ownership angle.

Ripple price fills a symmetric triangle with odds inclined to the upside

Ripple (XRP) price consolidation between the $0.5773 and $0.6644 range has culminated in XRP price filling a symmetric triangle on the weekly timeframe. XRP trades above the centerline (20-period Simple Moving Average) of a Bollinger Bands indicator at $0.5719. This is a good sign for the bulls, especially because volatility is optimal, evidenced by the standard widening of the upper and lower bands at $0.6970 and $0.4470 levels, respectively.  

Notably, when the bands tighten during a period of low volatility, the chances of a sharp price move in either direction increase. Also, volatility increases when the bands separate by an unusually large amount, and any existing trend may be ending.

Based on the outlook of the Relative Strength Index (RSI), momentum is rising, which accentuates the bullish outlook and is supported by the position of the Moving Average Convergence Divergence (MACD) and Awesome Oscillator (AO) indicators in the positive territory.

Increased buying pressure above current levels could see XRP price break above the upper boundary of the triangle by flipping the $0.6644 resistance to a support floor.

Further north, the gains could extend for Ripple price to overcome resistance due to the upper band of the Bollinger indicator at $0.6968 before hitting the forecasted $0.7000 target.

In a highly bullish case, the gains could extrapolate for Ripple price to tag the $0.7515 resistance, or in the very ambitious case, test $0.8516, level last seen in July 2023.

XRP/USDT 1-week chart

The bullish thesis abounds on the daily timeframe as well, with XRP price enjoying robust support from the lower boundary of the wedge as well as the 200-day Moving Average (MA). Owing to the fact that the MA cross between the 100-day SMA and the 200-day MA at $0.6266 and $0.6225 levels, respectively, have effectively halted multiple bearish attempts, underscoring the presence of substantial demand in the XRP market.

Also, the golden cross seen between the 100-day and 200-day MAs on December 29 suggested a bullish outlook for XRP’s long-term prospects. Now, with the price approaching the narrowing end of the technical formation, enhanced buyer momentum could see XRP price breakout above the, initiating a sustained bullish trend.

XRP/USDT 1-day chart

On the flip side, if the bears have their way, XRP price could drop below the $0.5773 support on the weekly timeframe, not only losing the support offered by the ascending trendline of the symmetric triangle but also invalidating the prevailing bullish thesis.

The breakdown would pave the way for a continuation of the move south, with Ripple price likely to test the $0.4615 support floor. In the dire case, XRP price could tag the lower band of the Bollinger indicator at $0.4471.

In the same way, traders should be aware that the ascending wedge pattern is a bearish pattern, signaling a trend reversal incoming. An unexpected breach below the lower boundary of the wedge could initiate a cascading effect, which could lead to a long-squeeze.