A cryptocurrency analyst has announced that the price of XRP has just entered a neutral state and this may be the case preparing for an crucial rally. He explains what this phase has historically looked like before the powerful rally and outlines what the current market structure could signal for XRP’s future development.
XRP price enters neutral ahead of bull rally
CW cryptocurrency expert and recent data analyst common fresh update XRP price actionnoting that the cryptocurrency has broken out of the bottom and moved to a neutral state. He said the move marks the early stage of a larger bull market, and a decisive move above the previous record high is a key signal of price acceleration.
The chart he shared shows XRP following a repeating four-phase pattern over multiple market cycles, first from 2014 to 2018 and then from 2017 to the present. In the 2014 cycle, Phase 1 started with a edged breakout to TP1, establishing a novel ATH. Since this peak, XRP has entered Phase 2, which has formed Symmetrical triangle. During this phase, XRP moved sideways in a tightening range for several months.
Then came phase 3, meaning a long period of consolidation for XRP. Eventually, the XRP price crossed the upper limit of the symmetrical triangle and entered phase 4. In this final phase, the XRP price rose to TP2, reaching a second ATH at the Fibonacci extension level of 6.618.
According to the chart, XRP has already completed phases 1-3 in the current cycle and has entered phase 4. After reaching its first peak around $3.50 (TP1) in early 2025, the cryptocurrency recently broke the upper limit of a similar Symmetric Triangle pattern, entering a “neutral state”.
Now that XRP has reached this state, CW has seen it enter Phase 4, the final stage of a four-phase historical pattern. The analyst predicted a second novel all-time record for XRP close to $21.50, which corresponds to the Fibonacci extension level of 6.618 from the 2014 cycle.
How momentum indicators reacted during each phase
At the bottom of the CW pricing table is a Stochastic oscillator and the moving average divergence (MACD) histogram. Stochastic shows overbought and oversold conditions for each cycle.
During Phase 2 of each cycle, the stochastic rate often reaches oversold levels that coincide with the prolonged consolidation and price decline seen during this period. During Phase 3 it remains around the mid-range, reflecting a neutral state. Finally, in the fourth phase of the 2014 cycle, there is a edged boost overbought levelscoinciding with powerful price breaks.
Meanwhile, MACD histogram reflects the changes in momentum in each phase. During Phase 1, the histogram shows powerful positive bars during the initial breakout. In phase 2, negative bars appeared as the price dropped, which was a signal bear rush. Phase 3 then showed compact, swinging bars, indicating low momentum. Finally, in Phase 4, the histogram widens sharply at the breakout, pushing the price to novel 2014 ATHs.
Featured image from Freepik, chart from Tradingview.com
