XRP Approaches Key Zone Preceding Previous Significant Breakout

XRP Approaches Key Zone Preceding Previous Significant Breakout – Key Insights

XRP is currently trading in a zone reminiscent of the conditions that preceded its last significant breakout, capturing the attention of investors and market analysts alike. Upcoming momentum indicators show that selling pressure is decreasing, and long-term holders seem to be gradually soaking up supply. While the price movement remains cautious at this time, these developments are prompting conversations about XRP's potential for another substantial price movement once market confidence returns.

Key Takeaways

XRP is in a similar trading zone to its last historic breakout.
Key momentum indicators indicate reduced selling pressure.
Long-term holders are likely accumulating supply.
Historical patterns suggest that XRP could experience a significant recovery.

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An Uncommon Momentum Reset on Higher Timeframes

In an important technical update regarding XRP's long-term charts, analyst Steph is Crypto has noted that the Stochastic RSI on the 3-week chart has dropped to a value of 0.00. This reading represents a state of complete compression for the indicator, signaling a rare momentum shift in XRP's trading history.

The significance of this signal is remarkable, as it has occurred only once before during the lowest points of the 2022 bear market. Typically, when this indicator hits zero, it serves as a clear sign that selling pressure has reached its maximum exhaustion.

From a structural viewpoint, this indicates that the energy behind the current downward trend is essentially exhausted. However, it is crucial to understand that this does not guarantee an immediate price recovery. Previous occurrences of this phenomenon have led to prolonged accumulation periods, where prices stabilized as knowledgeable investors began to establish positions, creating a foundation for the next significant price surge.

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Source: Chart from Steph is Crypto on X

The reappearance of this signal suggests that XRP currently faces limited downside risk at these valuations. It indicates a market environment where long-term holders are proactively absorbing the available supply, shifting from a distribution phase to a period of more strategic positioning.

Emerging Market Patterns on XRP’s Long-Term Chart

In a recent update, Altcoin Pioneers have brought attention to a striking fractal pattern developing on XRP’s chart, hinting at a potential repeat of historical market behavior. A comparison of a 3-day chart reveals significant similarities between the 2016–2017 market cycle and the current structure, both characterized by a prolonged ABC corrective phase leading up to a major breakout.

During the earlier cycle, XRP underwent months of correction before embarking on an explosive rally. The current structure for 2024 reflects this previous ABC pattern, while the ongoing correction from 2025 to 2026 closely aligns with the final C-wave down to the $1.87 area, albeit on a slightly shorter timeline.

If this fractal pattern continues to develop, Altcoin Pioneers predict that XRP could be nearing the end of a challenging shakeout phase, paving the way for the next significant upward movement. XRP has followed this type of pattern in the past, and those who endured the previous cycle are likely aware of what may come next.

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XRP trading at $1.86 on the 1D chart | Source: XRPUSDT on Tradingview.com