TLDR
- XRP’s falling channel mirrors a 2024 pattern before a strong rally.
- A rising long-term moving average signals a potential recovery for XRP.
- Deep-pocketed investors are accumulating XRP ahead of a breakout.
- XRP’s price consolidation may precede a significant price surge.
XRP’s recent price movements have sparked skepticism among many traders, with some declaring the token “dead” in a bearish market outlook. Despite this negative sentiment, market analyst Mikybull argues that XRP is following a recurring pattern seen before previous recoveries.
His observations suggest that the current consolidation phase may precede a significant breakout, similar to one seen in mid-2024.
XRP in a Descending Channel
Mikybull pointed out that XRP is currently moving within a downward-sloping channel, marked by red trend lines on the chart. This channel indicates a period of price weakness and consolidation. However, this pattern is not new. In fact, a similar trend was observed in mid-2024, when XRP’s price also faced downward pressure.
At that time, the token dropped to $0.38, remaining in a tight range for several weeks. As negative sentiment grew, many traders began to doubt its future potential. Nevertheless, after this prolonged consolidation, XRP surged, catching many off guard with a sharp rally by late 2024.
This descending channel pattern, combined with the rising long-term moving average, suggests that the current situation could mirror what happened in 2024. Notably, while the price appears weak in the short term, the broader trend may still be intact, signaling the end of the current consolidation phase rather than the start of a prolonged downturn.
Rising Long-Term Moving Average Signals Potential Recovery
In addition to the descending channel, Mikybull highlighted the importance of the rising long-term moving average. This blue curve on the chart continues to slope upward, even as the price moves lower in the short term. Historically, such a setup has often marked the conclusion of a consolidation phase. The long-term upward trend of the moving average indicates that XRP’s overall market momentum remains positive, despite recent price weakness.
This technical observation stands in contrast to the bearish narrative, suggesting that the pullback may be temporary. As in 2024, XRP could be poised for a sharp breakout once this phase of consolidation ends, catching traders by surprise once again.
