A crypto market analyst has suggested that XRP appears to be forming “one of its most significant multi-year structural patterns to date,” which could lead the altcoin to a rally similar to its 2017 expansion.
Related Reading
XRP Eyes 2017-Like Expansion
On Thursday, market observer ChartNerd stated that XRP appears to be repeating a setup that may surpass the scale of the 2017 pre-breakout formation, which led to a massive 68,000% expansion during that cycle.
In a video, the analyst explained that the altcoin has been developing since 2020, when the price saw its bear market bottom and created an ascending support level that held for nearly six years.
Since then, XRP has resembled its pre-2017 performance, where the cryptocurrency experiences significant advances after retesting its ascending support, followed by sharp corrections within descending channels.
As the chart shows, the altcoin recorded a 10x move between 2020 and 2021, which was followed by the 2022 bear market. After bottoming, XRP saw another 2x rally before retesting the trendline for the first time. The price then rallied another 6-7x between late 2024 and mid-2025, leading to the July all-time high (ATH) of $3,65.
Now, the cryptocurrency is developing a similar corrective pattern to the previous two retests of the ascending support, which could suggest the potential for 1,992% rally to a double-digit target upon confirmation.
“If XRP respects this pattern into late 2026, this is where we could potentially create the third retest, which is what we saw in the early cycles before the expansion in 2017,” the analyst asserted.
He also added that “if we are repeating this sort of multi-year cycle from before, just on a larger scale here, then this could be one of the largest structural phases where XRP is building a base and waiting for the leg up.”
Consolidation Until Late May?
ChardNerd also shared a short-term outlook for XRP based on its performance over the past 11 weeks. He noted that on the daily timeframe, the altcoin is still hovering between major descending resistance and ascending support levels, forming a triangle pattern.
So, you can see, since we actually formed the base back here in February, we worked down to $1.11, created the resistance, which came back to create this ascending level of support roughly at $1.28. Then we’ve seen this break up to sort of $1.50, and we’ve now pulled back to the support line once again.
Taking this into consideration, alongside the fact that its RSI levels are oversold on the daily timeframe, the analyst believes that XRP could be building a base near the ascending support before attempting to retest the descending resistance.
Related Reading
Nonetheless, he observed that “because we’re converging in this range and it’s been about 8 to 9, maybe 10 weeks of range-bound price action, it would be likely that we still see this compression” squeeze into the pattern’s apex until at least mid-May, when the price is expected to see a directional breakout from the formation.
Ultimately, the market observer suggested that “as long as we respect the trend line and continue to defend ascending support (…), it’s looking for a retest back towards sort of $1.50 in the short term.”
Featured Image from Unsplash.com, Chart from TradingView.com
Credit: Source link
