After a much-anticipated partial win for Ripple Labs and XRP investors, the fifth-largest cryptocurrency has succumbed to the overall downtrend in the market, dampening excitement following its July 13 victory against the US Securities and Exchange Commission. In the last 30 days, XRP has recovered by more than 26%.
Despite experiencing significant price swings since the 16% drop on August 16, the token has recouped 4% of those losses over the past seven days. As the market approaches month-end and witnesses a return of liquidity, there is a growing possibility that XRP will continue its upward trend.
Potential price explosion for XRP after extended accumulation phase
In cryptocurrency, there are few phenomena that excite investors and traders more than the anticipation of a price explosion fueled by a prolonged accumulation phase.
Such is the case of XRP, which shows a setup that mirrors previous patterns that led to significant price increases.
Crypto analyst and trader, known by the pseudonym ‘Crypto Bull’, has caught the attention of market participants with his 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, with explosive price movements consistently following prolonged periods of upside accumulation.
Crypto Bull’s analysis suggests that XRP is currently in its longest accumulation phase in history, further bolstering the potential for a significant price increase.
Examining Crypto Bull’s weekly chart, it becomes clear that XRP has previously experienced notable price explosions in 2020 and 2021, making it the third phase of accumulation.
The bullish momentum of XRP
During the first uptrend in 2020, XRP rallied an impressive 220%, starting below the USD 0.250 level and reaching a high of USD 0.774 in November. After a typical price correction, XRP started a new uptrend just months later in February 2021, aiming to surpass the previous all-time high.
In April 2021, XRP experienced a remarkable bull run, in line with the overall market trend, rocketing from $0.540 to its current all-time high of $1.946. Then the token tried to retest this pinnacle but failed to regain it.
These historical patterns in XRP’s price action after significant gains are remarkable; However, it remains uncertain whether the cryptocurrency will follow its established trajectory or ever surpass its record.
What is certain is that the ongoing accumulation phase, coupled with potential positive developments in US courts and growing investor excitement, positions XRP for a potential major break.
Despite briefly surpassing its macro range between $0.548 and $0.295 on July 13, XRP is currently back within this range, possibly laying a new foundation or waiting for the ideal conditions for its next uptrend.
While the cryptocurrency ecosystem eagerly awaits further developments, XRP’s future trajectory holds significant intrigue.
Whether it will repeat its historical patterns or embark on an unprecedented journey remains to be seen. Nevertheless, the current accumulation phase and the optimistic sentiment surrounding XRP paves the way for potential growth and renewed excitement among investors.
At the time of writing, XRP is trading at USD 0.5231, reflecting a 1.3% increase over the past 24 hours.
Featured image from iStock, chart from TradingView.com