- XRP has been consolidating within the bull pattern since last year.
- The token may retest the pattern before a bull rally begins.
The crypto market has become somewhat sluggish over the past 24 hours as there have been no major price movements XRP was no exception.
However, this could be the calm before a storm as a long-term bullish pattern appeared on the weekly price chart of XRP, which could result in a massive bull rally.
XRP’s Bullish Breakout
CoinMakretCaps facts revealed that the price of XRP could only move marginally over the past week. At the time of writing, XRP was trading at $0.6024 with a market cap of over $33 billion, making it the seventh largest cryptocurrency.
AMBCrypto’s analysis of the weekly XRP chart revealed a long-term descending channel pattern.
Source: TradingView
The pattern appeared on the token’s weekly chart in July last year, and since then the price has consolidated within the pattern.
The better news was that XRP had broken above that pattern at the time of writing. If the pattern is tested, investors could witness the token retesting its 2023 highs in the coming months.
Will XRP Start a Bull Rally?
AMBCrypto then looked at XRP’s on-chain data to see if it supported the possibility of another bull rally. According to our analysis of Santiment’s data, XRP trading volume fell while its price fell.
This suggested that investors were reluctant to trade XRP at a lower price.
In addition, supply on the stock exchanges continued to decline, indicating that buying pressure remained high. However, the metric in question was the MVRV ratio, which fell, indicating that the price will fall.
Source: Santiment
Additionally, at the time of writing, XRPs fear and greed index had a value of 62%, meaning the market was in a “greed” phase.
When the measure reaches this level, it indicates that the likelihood of a price correction is high. Like the above statistics, most market indicators also seemed bearish.
For example, the Relative Strength Index (RSI) registered a decline. A similar downward trend was also noticed in the Chaikin Money Flow chart (CMF).
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Moreover, the price of the token had reached the upper limit of the Bollinger Bands and retreated.
However, investors should not lose hope just yet as these numbers and indicators may point to a retest of the bullish breakout. If true, XRP would embark on a bull rally in the following days.
Source: TradingView