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Market analyst The Block Bull recently discussed XRP historical performance, suggesting its next massive breakout could occur in the next few weeks.
The analyst made this assertion while analyzing XRP’s price action since 2015 over a 1-week timeframe. His chart identifies an important historical pattern in this price action. If the pattern holds true, XRP could be gunning for another explosive move, similar to the ones seen in 2017 and 2021.
XRP Consolidation Phases
Data from the chart confirms a consolidation pattern that played out on two different occasions in the past. He marked important dates along the timeline from 2015, showing how XRP previously broke out of similar consolidations.
The first major breakout occurred in 2017, when XRP moved sharply upward following a 36-week consolidation period. During this first consolidation phase, the volume of XRP traded amounted to about 711.25 million tokens.
Interestingly, the breakout, which occurred when XRP spiked from the $0.0053 low in February 2017, led to the all-time high price of $3.31 in January 2018, marking the largest rally the altcoin has engineered in its history.
Notably, the chart depicts a second consolidation period, which occurred in May 2020 and spanned 36 weeks or 252 days. During this time, XRP traded a volume of around 1.915 billion tokens before breaking out in January 2021.
However, the price surge that occurred to the same highs as in 2017, mostly due to price suppression that XRP suffered as a result of the SEC lawsuit against Ripple. Despite this, it saw significant upward movement over the following months to reach $1.96 in April 2021.
A Possible Repetition
Currently, XRP is again moving closer to the end of another consolidation phase. The analyst emphasized that XRP is just nine weeks away from a potential breakout, projected for December 2024.
If the pattern repeats, XRP could see a sharp rise in price similar to previous cycles. However, The Block Bull failed to make any price projections. Interestingly, the volume traded during the current consolidation is much higher, around 7.486 billion, suggesting the rally could be explosive.
Notably, XRP’s price movements will be decisive over the next few weeks. A breakout could push XRP to test previous highs, potentially surpassing the $1 mark. For now, XRP currently changes hands at $0.5261, down 4.05% this week.
The analyst stressed the importance of having a solid plan when trading or investing in cryptocurrencies. Citing a Harvard study, he noted that individuals with a written plan are far more likely to succeed compared to those without one.