Ripple: Does THIS historical setup indicate a bullish breakout for XRP?
Journalist
Posted:
- XRP mirrors its last cycle, where consolidation sparked a 70% breakout.
- Will greed for quick gains once again crush FOMO?
Ripple’s[XRP] past consolidation sparked a massive rally to $3.40 as billions poured into its ledger. With XRP now holding steady between $2.30 and $2.50, could patience be the key to even greater returns?
Greed or fear : The critical choice ahead
XRP is down 30% from its mid-January peak of $3.40, with sell orders dominating the perpetual market and leverage at a yearly low.
Futures traders have been exiting positions despite Ripple never hitting an overheated state – proof that greed took over, with investors chasing quick gains instead of HODLing for bigger returns.
Fast-forward to now, XRP has been stuck in a tight range for five days – a setup that, in the last cycle, led to a month-long consolidation before a massive 70% breakout.
Source: TradingView (XRP/USDT)
If history repeats, XRP could be gearing up for a similar rally, potentially pushing it to $4.25 before Q1 ends. But will greed for quick gains once again suppress the fear-of-missing-out?
With a 4.80% jump in the last 24 hours, signs of renewed FOMO are creeping in, fueled by “market-wide” optimism as the crypto market cap rises 2.35%, reclaiming early February levels.
However, with Bitcoin dominance still holding strong, is Ripple’s repeat of its 70% breakout still out of reach?
Key conditions XRP must meet
In the last cycle, XRP’s breakout past $3 was no fluke. It was fueled by whales strategically accumulating, injecting $4 billion worth of XRP into their portfolios since November.
Meanwhile, the XRP/BTC pair hit its yearly high as capital flooded into Ripple, driven by retail FOMO. From the chart below, Ripple might be setting up for another explosive surge.
Source: Santiment
Just this past week, wallets holding 10M – 1B XRP acquired an additional 550 million tokens, boosting their holdings by 5.55%. The result? It sparked a 3.09% price jump the very next day.
Realistic or not, here’s XRP market cap in BTC’s terms
Déjà vu? The XRP/BTC pair is signaling a similar setup, squeezing short-sellers and laying the groundwork for a breakout.
If this trend holds, despite market volatility, a 70% rally to $4.25 may not be far off – making HODLing Ripple the play to watch.