An XRP analyst argues against the growing feeling of boredom around the price action of XRP, with the expectation that people will misinterpret what is actually there happens on the higher time frames.
We go to the social media platform X, an analyst known as XRP QUEEN said traders are overlooking a typical setup that has always preceded some of XRP’s most notable rallies. Her view is based on XRP’s weekly price structure and a comparison to how previous long consolidation phases ultimately resolved.
Why XRP’s $1.50 to $3 range is more important than it seems
A look at the weekly candlestick time chart shows that XRP’s price action has been largely flat for several months limited between support at $1.5 and resistance just above $3. Interestingly, according to XRP Queen’s analysis, XRP’s price action between around $1.50 and $3 is not a sign of weakness, but a repeat of previous accumulation zones.
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The chart shows how the token previously moved sideways for hundreds of days, marked on the chart as 200-day, 800-day, and even 1,000-day consolidation phases. In both cases, the price compression eventually gave way to a vertical move higher, labeled on the chart as MOON.
The main point being made is that these flat, frustrating periods tend to draw interest and attention away from the market. According to the analyst, this decline in engagement has always been in line with smart accumulation. The longer the range continues, the more pressure is created beneath the surface.
$2.72 and the projection of a teleport move
One notable level on the chart is the $2.72 zone, which is around the 0.786 Fibonacci extension level projected from the 2018 XRP price lows. Breaking and holding above $2.72 would be important to how XRP recovers to new all-time highs. As noted by XRP Queen, if $2.72 holds, then the next expectation is $9-$15.
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Once XRP leaves this range, it will teleport. No withdrawals and no second chances. The projection on the chart shows Fibonacci extensions extending well above the current price. These extensions include 0.786 at $2.71, the 1.0 extension around $3.40, followed by 1.618 at $5.47, 2.818 at $8.78 and the most extreme 4.764 extension at around $15.89, all pointing to price targets that will be breached once the current range is breached.
However, the altcoin is is currently trading well below the $2.72 level needed to confirm price teleportation to interesting highs. At the time of writing, Until that happens, XRP is in consolidation mode, and it is unclear how long it will last trading sideways in the current range.
Featured image from Freepik, chart from Tradingview.com