- XRP shows a bullish monthly structure after breaking a seven-year consolidation, signaling potential parabolic growth.
- Despite trading at $2.91, XRP maintains strong liquidity with $5.98B in daily volume and solid institutional interest.
- Market psychology suggests XRP is shifting from fear into early optimism, with no signs of euphoria detected yet.
The monthly XRP chart is displaying a bullish breakout structure, emerging from a seven-year consolidation period. Market indicators suggest that the asset could be preparing for a parabolic phase as long-term accumulation gives way to renewed momentum.
XRP Breaks from Seven-Year Consolidation
The monthly XRP chart is shaping into a bullish flag pattern, hinting at the potential for a major upward move. According to Bobby A (@Bobby_1111888), XRP has completed a seven-year consolidation phase, forming the foundation for a parabolic advance.
This extended consolidation was marked by tight Bollinger Bands, signaling volatility compression. Historically, such compression phases precede large expansions, often acting as the catalyst for market-wide attention. Structurally, XRP has developed a large cup formation with higher lows, creating a textbook bullish accumulation pattern.
Two key resistance areas, labeled as “Base Camps,” have been retested and converted into strong support zones. The Relative Strength Index (RSI) is also rising but remains within manageable levels, confirming that the market has not yet entered euphoric conditions.
Price Action and Market Data
At the time of writing, XRP is priced at $2.91, reflecting a 3.16% daily decline. Its market capitalization stands at $173.22 billion, with a circulating supply of 59.48 billion tokens out of a maximum of 100 billion. The Fully Diluted Valuation (FDV) sits at $291.35 billion, reinforcing expectations of long-term adoption.
Daily trading volume has reached $5.98 billion, representing a Volume-to-Market Cap ratio of 3.43%. Such a ratio indicates healthy liquidity and points to the correction being more technical than structural. Irrespective of the decline in its price, XRP is still among the most actively traded assets in the crypto market.
Profit-taking or broader risk sentiment is often the cause of short-term price weakness. Nevertheless, the predictable nature of supply and frequent liquidity of XRP still appeal to institutions. These factors provide a strong base for resilience even during corrective phases.
Psychology and Forward Outlook
XRP’s market psychology is shifting from fear and uncertainty into the early stages of optimism. The chart describes this next stage as the “parabolic zone,” where long-term investors are often rewarded while latecomers chase rising momentum.
The Fibonacci extension projections show potential targets between $8 and $13 during the next blow-off phase, aligning with historical cycles. Momentum indicators such as the monthly MACD are also turning positive, with a crossover suggesting the possible start of a new long-term trend.
Historical analysis indicates XRP could be preparing for its second RSI peak into overbought territory, similar to the 2018 cycle but potentially larger in scale. Combined with solid structural support and liquidity, this positions XRP for a potential expansion as sentiment improves.
