After a highly anticipated partial victory for Ripple Labs and XRP investors, the fifth-largest cryptocurrency has succumbed to the overall market downward trend, dampening the excitement following its July 13 triumph against the US Securities and Exchange Commission. Over the past 30 days, XRP has retraced by more than 26%.
Despite experiencing significant price fluctuations since its 16% drop on August 16, the token has recovered 4% of those losses within the past seven days. As the market approaches the monthly close and witnesses liquidity re-entering, there is a growing possibility that XRP will continue its upward trend.
Potential Price Explosion For XRP Following Extended Accumulation Phase
In cryptocurrency, few phenomena captivate investors and traders more than anticipating a price explosion fueled by a prolonged accumulation phase.
Such is the case for XRP, which shows a setup that mirrors previous patterns that led to significant price surges.
Crypto analyst and trader, known by the pseudonym “Crypto Bull,” has caught the attention of market participants with its bold prediction that XRP could be on the brink of a major upward rally.
According to Crypto Bull, historical data reveals a recurring pattern for XRP, where explosive price movements have consistently followed extended periods of upward accumulation.
Crypto Bull’s analysis suggests that XRP is currently in its longest accumulation phase in history, further strengthening the potential for a significant price surge.
Examining the weekly chart provided by Crypto Bull, it becomes evident that XRP has previously undergone notable price explosions in 2020 and 2021, making this its third accumulation phase.
XRP’s Bullish Momentum
During the first uptrend in 2020, XRP surged by an impressive 220%, starting below the $0.250 level and reaching a high of $0.774 in November. Following a typical price correction, XRP embarked on another upward trend merely months later, in February 2021, aiming to surpass its previous all-time high.
In April 2021, XRP experienced a remarkable bull run, aligning with the overall market trend, and skyrocketed from $0.540 to its current all-time high of $1.946. Subsequently, the token attempted to retest this pinnacle but fell short of reclaiming it.
These historical patterns in XRP’s price action following significant surges are noteworthy; however, whether the cryptocurrency will follow its established trajectory or surpass its all-time high remains uncertain.
What is certain is that the ongoing accumulation phase, coupled with potential positive developments in the US courts and growing investor excitement, positions XRP for a possible major breakout.
Despite briefly surpassing its macro range between $0.548 and $0.295 on July 13, XRP is currently within this range again, possibly establishing a new base or awaiting the ideal conditions for its next uptrend.
As the cryptocurrency ecosystem eagerly awaits further developments, XRP’s future trajectory holds considerable intrigue.
Whether it will reiterate its historical patterns or embark on an unprecedented journey remains to be seen. Nonetheless, the current accumulation phase and the optimistic sentiment surrounding XRP set the stage for potential growth and renewed excitement among investors.
At the time of writing, XRP is traded at $0.5231, reflecting a 1.3% increase over the past 24 hours.
Featured image from iStock, chart from TradingView.com