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.

XRP could stage a strong bullish breakout after Coinbase CEO Brian Armstrong made a major announcement 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. The agency considers staking an unregistered security, subject to its regulation.

Ending the Coinbase lawsuit is a positive development for Ripple Labs and XRP’s price. This outcome increases the likelihood that the SEC may drop its appeal against Ripple, especially as the agency is expected to adopt a more crypto-friendly stance under the Trump administration.

Ripple and the SEC have been embroiled in a legal battle since 2020 when the regulator accused Ripple Labs of selling unregistered securities. Judge Analisa Torres ruled that XRP was not a security when sold to exchanges but determined that its institutional sales violated securities laws. She ordered Ripple to pay $125 million, significantly lower than the SEC’s initial $2 billion demand.

Both parties filed appeals, but the SEC may withdraw its case. Trump has nominated Paul Atkins, a crypto-friendly official, as the next SEC chair. Most analysts expect him to drop the appeal against Ripple.

XRP price analysis

The weekly chart shows that XRP has lacked clear direction over the past two months. This price movement aligns 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, the highest swing in April 2021. This price also marked the upper boundary of the cup-and-handle pattern, a well-known bullish indicator.

Additionally, 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, 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.