- XRP’s price action mirrors past accumulation, hinting at a major breakout like its previous 470% surge.
- Strong support levels and RSI compression signal bullish momentum, setting the stage for a potential rally.
- Market conditions favor an upward move, with historical trends suggesting XRP could see explosive price growth.
XRP’s momentum has broken out once more, suggesting a potential rally similar to its last performance. In a past breakout, XRP increased nearly 470%, a nearly 6X price rise. This latest shift in momentum suggests a price move is underway. Price action also shows a previous accumulation phase, suggesting a future breakout. The RSI indicator is in a compression pattern, which also favors this bullish.
XRP Price Action Shows Strong Accumulation
XRP’s price has been consolidating within a defined range, forming a rectangular accumulation zone. Previously, a similar consolidation led to a substantial breakout. A recent dip tested the lower boundary before rebounding, showing resilience at support levels. Now, the price is nearing the midpoint of its range, indicating a possible continuation.
Historical trends highlight that when XRP exits such phases, explosive price movements follow. The indicator below the price chart aligns with this structure, forming a descending triangle. In past instances, similar patterns preceded significant bullish breakouts. Furthermore, green-circled areas on the chart indicate key support levels where price rebounds have previously occurred. This repetition strengthens the argument for a potential rally.
Market Conditions Favor a Bullish Breakout
Moreover, XRP’s previous accumulation phase resulted in a prolonged bullish move. Currently, the market presents a comparable scenario, maintaining a range-bound formation. The RSI-like indicator confirms this repeating cycle, aligning with price action. As volatility decreases, conditions become favorable for a breakout.
Additionally, market structure remains intact, with XRP holding near critical support. The overall consolidation period suggests an impending upward move, supported by technical indicators. If history repeats, XRP could witness another rally.
Ali’s analysis highlights a potential head-and-shoulders pattern on the weekly chart, emphasizing the importance of the $2 support level. Holding above this point remains crucial to maintaining bullish momentum.
