XRP’s Potential Breakout: Lessons from 2017
XRP is showing a breakout pattern reminiscent of its 2017 surge, but larger in scale, according to analysts.
In Q4 2017, XRP experienced a significant parabolic rise, closing at an all-time high of $3.30 by mid-Q1 2018. Fast forward to Q4 2024, and Ripple has already achieved a remarkable 697% rally to $3.40, driven by real-world adoption and developments in the SEC lawsuit.
However, maintaining this momentum poses a challenge. Despite a favorable stance from Trump regarding Ripple, XRP was trading at $2.52 at press time, reflecting a 35.2% decline from its peak.
The 2017-2018 cycle saw XRP crash to $0.63 by the end of Q2 2018, erasing most gains and leading to a prolonged consolidation phase. The pressing question is whether history will repeat itself or if Ripple can forge a new path.
Is a 2018-Style Rally Possible for XRP?
Technically, XRP has built a solid support zone around $2, testing this level twice since the post-election rally. The first bounce lifted XRP above $3.30, aided by a bullish MACD crossover. Yet, a market-wide selloff subsequently pulled XRP back to $2.
Despite the downturn, XRP showed resilience with a 26% rebound to $2.52 within a week. However, the number of active addresses has sharply declined—from a peak of 873,184 two years ago to just 331,516 currently, down from 580,000 only four days ago when XRP retested $2.90.
Nonetheless, sell-side liquidity has been absorbed, with whale accumulation hitting an all-time high during the post-election rally, indicating minimal distribution and reinforcing the $2 support zone. If Ripple maintains its current structural integrity and improves on-chain metrics, a breakout to a new all-time high in 2025 is conceivable. This scenario lowers the chances of a 2018-style crash, fostering optimism for sustained growth in Ripple’s future.
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