XRP Enters Phase 4 In Long-Term Chart Structure: Road To $21.5 Now Open

Overview

Recent technical analysis of XRP’s price action indicates that the cryptocurrency is positioned to enter a significant phase in its long-term chart structure. This analysis suggests that XRP is currently in Phase 4, which could potentially lead to a price surge towards a notable target.

Technical Analysis of XRP’s Phases

The analysis shared on the social media platform X illustrates that XRP has been trading through a series of four distinct phases for over a decade. The first complete sequence of these phases occurred between mid-2013 and mid-2017, laying the groundwork for XRP’s initial rally to its price peaks.

Since then, XRP has been developing a second set of four phases that mirrors the previous pattern. The cryptocurrency transitioned through phases 1 and 2, which culminated in a peak in 2018 for phase 1, followed by a pullback during phase 2 from 2018 to 2020. This was succeeded by an unusually prolonged phase 3, which has lasted from 2019 to mid-2024. This phase is characterized by a broad, multi-year consolidation visible on the chart, marked by converging trendlines of lower highs and higher lows. During this time, XRP’s price was confined within this compression structure, reflecting behavior similar to that observed during phase 3 of the previous cycle.

The Transition to Phase 4

Phase 4 is said to have commenced in 2025, following XRP’s breakout from the compression range in mid-2024. This breakout mirrors the structural transition that occurred in mid-2017 when XRP exited its consolidation phase and entered an expansion phase. Currently, phase 4 has been in effect for several months, during which XRP experienced a rally to new all-time highs, reaching a peak in mid-2025.

However, following this peak, XRP’s price action has undergone a corrective downward trend, showing a decrease of approximately 48% at the time of analysis. Despite this correction, the analysis suggests that XRP remains in phase 4, with expectations of breaking into new all-time highs in the near future. It is important to note that this phase could unfold over an extended period rather than in a single impulse move.

From author

The analysis of XRP’s price action reveals a structured approach to understanding its market movements. By identifying these phases, traders and investors can better anticipate potential trends and shifts in the market. The significance of phase 4 is particularly noteworthy, as it indicates a potential return to price discovery, providing a framework for future price expectations.

Impact on the crypto market

• XRP’s transition into Phase 4 may influence investor sentiment, potentially attracting more interest in the cryptocurrency.
• A break above the current all-time high could signal a broader bullish trend in the market, impacting other cryptocurrencies.
• The analysis underscores the importance of understanding long-term chart structures in anticipating price movements.
• The projected target of $21.5, based on historical expansion ratios, could motivate traders to position themselves favorably in anticipation of significant price changes.
• The ongoing corrective trend may present both risks and opportunities for traders, necessitating cautious decision-making in the short term.