XRP is forming a chart pattern leading to a 1,500% price rally.
The weekly price chart of XRP (XRP) is starting to resemble a technical pattern that previously marked a major cycle low and preceded a major reversal.
Main Receptors:
XRP's weekly chart fractal looks like a 2017 cycle low before a 1,577% rally.
XRP's price breakout requires a sustained move above the $2 protection zone.
Declining exchange rates indicate accumulation of XRP.
XRP fractal hints at a big price rally ahead
A long-term fractal comparison between the 2017-2018 and 2024-2026 cycles suggests that XRP will show a bearish pattern before a sharp reversal from its multi-year high of $3.66.
Related: XRP holders face $50B in undisclosed losses when trading below $1.40
On the weekly chart, XRP's descent to the $1.10 lower contiguous triangle formed in In 2017, the price dropped to $0.12, marking a local bottom.
“There's potential for us to see this whole run play out the same way,” crypto analyst Javon commented.
“Doing so now means only a temporary pullback before it goes above the $20 mark.”
In the year In 2017, XRP strengthened within the triangle as a further launch, finally breaking above the upper trend line of the triangle and gaining 1,577%.
Applying this framework, XRP bulls are expected to push the price above the $1.78-$2.30 resistance to ensure a sustained upside breakout.
Note that this triangle's upper trendline is at $2, where the 100-week simple moving average (SMA) and the 50-day SMA converge.
XRP UTXO Price Distribution (URPD) data shows large supply clusters remaining above the spot price. The $2 level covers 3.6% of XRP's supply, and $1.80 covers 3.15%, creating serious upside resistance.
According to Cointelegraph, buyers need to break and hold the price of XRP above the lower line of the descending channel pattern at $2 on the daily chart to show a long-term trend change.
The supply of XRP on exchanges continues to decline.
According to data from CryptoQuant, XRP's multi-exchange daily deposit/withdrawal delta, a metric that tracks net XRP transactions across 15 major crypto exchanges, has dropped to record lows.
CryptoQuant analyst Amr Taha said in a QuickTake analysis that “when the metric goes down, it suggests that more investors will withdraw XRP to external wallets.
“This behavior often reflects accumulation and long-term confidence.”
This was echoed by fellow analyst Darkfost, who said, “The number of XRP withdrawal transactions on Binance has seen several sudden spikes in recent days.”
As shown in the chart below, this includes over 14,000 withdrawal transactions from Binance on March 6.
This indicates that investors are “accumulating and then choosing to transfer their tokens to private wallets instead of keeping them on exchanges,” Darkfost added.
As a result, the XRP exchange rate seen at the end of May 2021 dropped to 12.9 billion on Wednesday.
Meanwhile, outflows from US-based spot XRP ETFs slowed after Goldman Sachs emerged as the largest ETF holder, indicating institutional confidence in XRP's long-term potential.
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