A prominent market analyst believes the recent bearish trend is a test of XRP holders’ character, predicting a price outburst in the near future.
Notably, Charting Guy shared this view in his recent commentary, urging patience with XRP. The cryptocurrency has continued to consolidate around the psychological $2 price, a level that analysis identified as playing a crucial role in investor sentiment.
Year-Long XRP Accumulation
In his analysis, Charting Guy claimed that XRP’s recent consolidation is testing the patience of enthusiasts. Unfortunately, he noted that many holders are falling for this trap and “folding under pressure.”
His statement aligns with the growing sentiment in the XRP community that XRP is undervalued at current prices. Many analysts have suggested that XRP holders have no idea what they have. They believe that the asset would one day reach its true valuation, benefiting those who did not sell their stash.
Meanwhile, Charting Guy’s Thursday analysis suggested that XRP is in a year-long accumulation zone. An accompanying chart further buttressed this point and also highlighted subsequent developments in the event of a momentum shift.
Wyckoff Method Provides Perspective
The chart shows that XRP has been trending within a descending channel in the 2-day timeframe. This accumulation started from its July high of $3.67, with the token fluctuating between the top and bottom of the wedge.
Charting Guy highlighted the alignment of the price action with the Wyckoff method, a technical pattern developed by Richard D. Wyckoff in the 20th century. The structure started with preliminary supply (PSY) at $2.90 in December 2024, when large holders began to exit the market.
The January high of $3.39 aligned with the buying climax (BC), suggesting the move was a high-volume rally, spurred by market euphoria. Meanwhile, the beginning of the accumulation channel in July was the upthrust (UT) price action, which is a false breakout above the BC to deceive bulls.
The analyst expects this accumulation pattern to fully form, spurring the next XRP impulse move. The subsequent key price actions to monitor are the show of strength (SOS) move to retest January’s high of $3.39 and the following last point of support (LPS) retracement to $2.90. If this happens successfully, it will confirm the start of a fresh uptrend.
XRP Target When Accumulation Ends
Meanwhile, Charting Guy’s analysis also identified price targets if this Wyckoff accumulation pattern concludes. The chart shows a possible rally to a new all-time high of around $8, representing a 263% surge from its current market price of $2.20.
Remarkably, this analysis is not the first projecting that XRP would soar to $8. The Bearable Bull also asserted this price in his recent commentary, calling the mark XRP’s “next chapter.”
Analyst Dark Defender also agrees. He predicted that the completion of the final lap in a five-wave Elliot wave pattern would see XRP reach the $8 price level.
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.
