Analyst Says XRP Price Just Entered Neutral State – What This Means

Overview

A crypto analyst has indicated that XRP’s price has transitioned into a neutral state, potentially setting the stage for a significant rally. This analysis highlights the historical context of XRP’s price movements and suggests that the current market structure may signal an impending bullish trend for the cryptocurrency.

XRP Price Enters Neutral State

According to a recent update from a crypto expert and data analyst, XRP has recently experienced a breakout from its previous lows and is now in a neutral phase. This shift is perceived as the initial step towards a larger bull rally. A decisive movement above XRP’s previous all-time high is considered a critical indicator for potential price acceleration.

The analyst shared a chart illustrating XRP’s adherence to a recurring four-phase pattern throughout various market cycles, particularly from 2014 to 2018 and again from 2017 to the present. In the earlier 2014 cycle, Phase 1 commenced with a sharp breakout that established a new all-time high (ATH). Following this peak, XRP entered Phase 2, characterized by the formation of a Symmetrical Triangle, during which XRP traded sideways within a tightening range for several months.

Phase 3 followed, marking an extended consolidation period for XRP. Ultimately, the price broke through the upper boundary of the symmetrical triangle, leading to Phase 4. In this concluding phase, XRP surged to a second ATH, reaching the 6.618 Fibonacci extension level.

Currently, XRP is believed to have completed Phases 1-3 in its ongoing cycle and has now entered Phase 4. After reaching its initial peak around $3.5 earlier in 2025, XRP recently broke above the upper boundary of a similar Symmetrical Triangle pattern, confirming its entry into a neutral state. The analyst has suggested that this marks the beginning of Phase 4, the last stage of the four-phase historical pattern.

How Momentum Indicators Reacted During Each Phase

The analyst’s chart also features a Stochastic Oscillator and a Moving Average Convergence Divergence (MACD) histogram, which provide insights into momentum trends across each phase. The Stochastic Oscillator indicates overbought and oversold conditions throughout the cycles. In Phase 2, the Stochastic frequently hits oversold levels, which correspond with the prolonged consolidation and price declines typical of that phase.

During Phase 3, the Stochastic remains around the middle range, reflecting a neutral state. In Phase 4 of the 2014 cycle, it spikes toward overbought levels, aligning with significant price breakouts. The MACD histogram similarly reflects momentum shifts in each phase. In Phase 1, the histogram shows strong positive bars during the initial breakout. Conversely, Phase 2 witnesses negative bars as the price declines, indicating bearish momentum. Phase 3 features small, fluctuating bars, suggesting low momentum, while Phase 4 sees a rapid expansion of the histogram on the breakout, driving the price to new ATHs in the 2014 cycle.

From author

The analysis presented illustrates a systematic approach to understanding XRP’s price action through historical patterns. By identifying the current phase and its implications, traders and investors can better navigate the market dynamics surrounding XRP. The emphasis on momentum indicators further enhances the understanding of price movements and potential future trends.

Impact on the crypto market

• XRP’s entry into a neutral state may attract investor interest, potentially leading to increased trading volume.
• Historical patterns suggest that a bullish phase could influence market sentiment positively.
• The focus on momentum indicators could prompt traders to adjust their strategies based on observed trends.
• Analysts and investors may closely monitor XRP’s price movements for signals of a breakout above previous highs.
• Increased attention on XRP may lead to broader discussions about market cycles and trading strategies among crypto enthusiasts.