XRP eyes rally: Consolidation phase sparks optimism

XRP, the digital token associated with Ripple, has declined 18% during the current month, bringing the price to a level near significant support zones, according to market data.

The token recorded a modest gain over the past 24 hours and advanced slightly during the past week, while daily trading volume remained elevated. The price remains well below its recent high.

Source: CoinGecko

Technical analyst CRYPTOWZRD characterized the current movement as an “inverse parabolic decline” in a market analysis. The analyst noted that a similar decline earlier this year preceded a subsequent rally, and stated that “sharp declines often precede an equally violent rally.” Market participants are monitoring whether the key support zone will hold, which could determine the token’s trajectory toward the middle of its recent trading range.

XRP is in a multi-month consolidation

Analyst ChartNerd published a long-term chart indicating XRP is in a multi-month consolidation phase above a level that previously marked its all-time high close and now functions as support. The analyst noted the pattern is “valid as long as support holds,” with a potential upside target derived from Fibonacci projection analysis.

A separate chart from ChartNerd suggests XRP may be approaching the final stage of an Elliott Wave pattern, a technical analysis method that identifies recurring price patterns. According to this analysis, the token appears to be in the fourth phase of a five-stage structure, with consolidation occurring above the 2021 high. The projected fifth wave indicates potential for significant upside movement.

Exchange-traded fund (ETF) activity related to XRP has increased, according to data shared by CryptosRus. The data showed substantial inflows into newly launched funds, with Grayscale and Franklin Templeton recording combined inflows at launch. Canary’s fund holds the largest allocation among the tracked products.

Technical analysts are also observing a possible flag pattern formation. Heatmap data from analyst Steph Is Crypto indicates concentrated liquidity in a narrow price zone, which the analyst described as a potential “magnet” for price action. The next near-term movement could target the upper portion of the recent trading range, according to technical projections.