Over the last year, the XRP price has managed to maintain a rather high price region, with the most resistance coming in at the $3 level. Despite this, the cryptocurrency has been unable to actually clear its all-time high of $3.8 that was set back in 2018, making it an important level to break. However, the digital asset could be on the verge of another major surge, potentially pushing it toward new all-time highs during this period, with an 8-year accumulation phase possibly coming to a close this cycle.
The Breakout That Could Send XRP Price To New All-Time Highs
Crypto analyst NoahDefraties has pointed out an 8-year accumulation base that could be the starting point for the next XRP price rally. According to the breakdown shared by the analyst, this 8-year accumulation base has persisted since 2018 and has now pushed towards testing major levels from the previous cycles.
As the analysis shows, there is now high and tight consolidation on the right side of the 8-year accumulation base. This base could trigger a possible bullish continuation on the current rally. From here, a number of levels swim into view that are important to the next rally.
The first one is the $3.30 level that bulls will need to mount to confirm the next wave. A breakout from here with momentum will mean that XRP buyers are back in control, with demand climbing. Once this level is broken, then the next thing would be a push toward new all-time highs.
Projections for how high the XRP price could go after a breakout confirmation lie as high as $6.50. “This is one of the most significant long-term structures XRP has ever formed,” the analyst said. “Traders should watch closely for confirmation in the coming months.”
Volume Profile Could Be A Problem
One major hindrance to the XRP price continuing its rally would be the decline in volume. Data from the Coinglass website shows that the XRP trading volume has been trending low recently. After spiking above $41 billion daily volume back in July, it has since retraced and crashed below $10 billion daily volume.
For the XRP price to keep rising, there needs to be an uptick in the daily trading volume. In the event that this trading volume is able to rise like it did back in July, then it would provide the needed push required in the campaign for new all-time highs.
