XRP Technical Pattern Echoes 2017's 1,500% Surge Blueprint, With One Caveat
The weekly XRP chart displays striking similarities to 2017's configuration that preceded a substantial rally, though bullish investors must overcome the $2 resistance barrier first.
The weekly price chart for XRP (XRP) is beginning to display characteristics of a technical formation that historically signaled a significant cycle bottom and came before a dramatic upward reversal.
Key takeaways:
- The weekly chart pattern for XRP bears resemblance to the 2017 cycle bottom that came before a 1,577% rally.
- For XRP to achieve a price breakout, a consistent climb above the $2 resistance area is necessary.
- Decreasing exchange balances suggest ongoing XRP accumulation activity.
XRP pattern suggests potential for substantial price surge
When comparing long-term fractals between the 2017-2018 cycle and the 2024-2026 cycle, evidence emerges that XRP's steep correction from multi-year peaks of $3.66 bears striking resemblance to a formation that established a price floor before triggering a sharp reversal.
Analyzing the weekly chart reveals that XRP's decline to $1.10 appears similar to a retest of the symmetrical triangle's lower trendline observed in 2017, when the price fell to $0.12, establishing the local bottom.
In his commentary, crypto analyst Javon stated, "There is potential we see this overall run unfold in an identical manner," adding:
"Doing so means that right now is only a temporary pullback before a move well above the $20 mark."
During 2017, XRP underwent consolidation within the triangle as leverage was reset, ultimately breaking through the triangle's upper trend line and surging by 1,577%.
Using this analytical framework, bullish XRP traders will need to drive the price beyond the $1.78-$2.30 resistance zone to validate a sustained upward breakout.
It's worth noting that this is precisely where the triangle's upper trendline at $2, the 100-week simple moving average (SMA), and the 50-day SMA all intersect.
Analysis of XRP's UTXO realized price distribution (URPD) data reveals significant supply clusters positioned above the current spot price. At the $2 level, 3.6% of the XRP supply is held, while $1.80 contains 3.15%, creating substantial overhead resistance.
According to Cointelegraph's previous reporting, purchasers must successfully breach and maintain the XRP price above the descending channel pattern's downtrend line at $2 on the daily chart to indicate a long-term trend reversal.
Exchange supply of XRP maintains declining trajectory
The multi-exchanges daily depositing/withdrawing transactions delta for XRP, which is a metric monitoring the net quantity of XRP transfer transactions across 15 major crypto exchanges, has fallen to unprecedented lows, based on data provided by CryptoQuant.
"When the metric declines, it suggests that more investors are withdrawing XRP into external wallets," stated CryptoQuant analyst Amr Taha in a QuickTake analysis, adding:
"This behavior often reflects accumulation and long-term confidence."
This observation was supported by fellow analyst Darkfost, who noted the "number of XRP withdrawal transactions on Binance has shown several sudden spikes in recent days."
This encompasses over 14,000 withdrawal transactions from Binance recorded on March 6, as demonstrated in the chart below.
This pattern reveals that investors are "accumulating and then choosing to transfer their tokens to private wallets rather than keeping them on the exchange," Darkfost further explained.
Consequently, the XRP balance held on exchanges has declined to 12.9 billion as of Wednesday, representing levels not witnessed since May 2021.
In the meantime, outflows from US-based spot XRP ETFs have diminished following Goldman Sachs' emergence as the largest ETF holder, indicating institutional confidence in XRP's long-term potential.