XRP Breaks 7-Year Range, Heading Towards Parabolic Price Rise

The monthly XRP chart is showing a bullish breakout structure, breaking out of a seven-year long consolidation phase. Market indicators suggest that this asset may be preparing for a parabolic phase as long-term accumulation gives way to new momentum. XRP Breakout of 7-Year Long Accumulation Phase The monthly XRP chart is forming a bullish flag pattern, signaling strong bullish potential. According to Bobby A (@Bobby_1111888), XRP has completed a seven-year-long consolidation phase, laying the foundation for a parabolic price increase.

This prolonged consolidation is marked by the tightening of the Bollinger Bands, signaling a contraction in volatility. Traditionally, such periods of contraction often occur before significant expansions, typically serving as catalysts that attract the attention of the entire market. Structurally, XRP has developed a large cup pattern with higher lows, creating a typical bullish accumulation pattern. The two main resistance areas, known as "Base Camp," have been retested and converted into strong support zones. The Relative Strength Index (RSI) is also increasing but remains within controllable levels, confirming that the market has not yet entered a state of euphoria. Price Action And Market Data As of the time of writing, the price of XRP is $2.91, reflecting a decrease of 3.16% for the day. The market capitalization of XRP is currently at $173.22 billion, with a total circulating supply of 59.48 billion tokens out of a maximum total of 100 billion tokens. The fully diluted valuation (FDV) stands at $291.35 billion, reinforcing expectations for long-term adoption. The daily trading volume has reached $5.98 billion, corresponding to a Trading Volume to Market Capitalization ratio of 3.43%. This ratio indicates healthy liquidity and suggests that this correction is more technical than structural. Despite the price drop, XRP remains one of the most actively traded assets in the cryptocurrency market. Profit-taking sentiment or broader risk sentiment is often the cause of price declines in the short term. However, the predictable nature of supply and the regular liquidity of XRP still attract institutions. These factors provide a solid foundation for recovery even during correction phases. Psychology and Future Prospects The market sentiment for XRP is shifting from fear and uncertainty to the early stages of optimism. The chart depicts this next phase as the "parabolic zone", where long term investors typically benefit while latecomers pursue the bullish trend. Fibonacci expansion forecasts indicate potential targets ranging from $8 to $13 during the next breakout phase, consistent with historical cycles. Momentum indicators such as the monthly MACD are also turning positive, with crossovers suggesting the possibility of starting a new long term trend. Historical analysis suggests that XRP may be preparing for a second RSI peak in the overbought zone, similar to the 2018 cycle but with potential for further expansion. Combined with solid structural support and liquidity, this puts XRP in a position for potential expansion as market sentiment improves.