Market analyst Dom believes XRP could see further price upside, citing historical price behavior and current market conditions.
In a recent analysis, he pointed out that XRP has displayed a particular pattern at cycle tops in the past, seeing rapid spikes followed by immediate declines. However, the current price action deviates from this trend, suggesting there could be a potential for more upside.
This commentary comes when XRP is facing intense bearish pressure at the highs around $2. After each attempt to breach the $2.6 to $2.8 resistance range, the altcoin witnesses opposition. This has led to constant declines. Nonetheless, the asset has maintained a base at the lower end of the $2 mark.
Past Trend of Immediate Declines After Cycle Top
Dom believes this steady base is extremely bullish. He highlighted past market cycles where XRP saw sharp rallies but failed to hold gains.
For instance, XRP rose sharply to $0.0614 in December 2013 and immediately crashed to $0.00281 months later. It soared to $0.02803 by December 2014 and recorded another immediate drop. This repeated in January 2018, with a sharp spike to $3.8 and then a massive drop immediately.
The market also observed this trend in April 2021 when XRP rose to $1.96 and in July 2023, when it saw $0.95. In each of these cases, XRP never established a stable price range at the peak, meaning market participants did not reach a consensus on value. As a result, prices collapsed soon after.
XRP Maintains $2
However, this time, XRP has been trading above $2 for nearly three months, unlike previous cycles where it quickly reversed from highs. Dom believes prolonged price stability at this level suggests that the market is accepting these prices. This contrasts with previous tops.
“The longer price spends time at a level, it’s always just reflective of how much market participants agree on that price,” the analyst remarked. In his view, the ongoing range formation could lead to a bullish expansion once the market reaches equilibrium.
Dom explained that true cycle tops tend to form quickly, without presenting traders much opportunity to exit at high levels. Since XRP continues to hold its range above $2, he sees a higher probability of continued upside rather than a downturn.
Furthermore, in past cycles, XRP saw sharp increases in volume during price spikes, followed by an equally swift drop-off as the market rejected those price levels. However, this time, volume remains steady, suggesting there is market participation at current prices.
If XRP was forming another classic cycle top, volume would likely have already faded, and price would have begun a sharp decline. Instead, the market continues to absorb supply at these levels.
While Dom has emphasized that there is a high possibility of further upside, it remains to be seen when a breakout from this range could occur. Analysts like Austin Hilton suggest the market could be awaiting a significant development. Currently, XRP changes hands at $2.43, down 1.28% in the past 24 hours.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
