- XRP is in a Wyckoff reaccumulation phase, indicating potential breakout.
- XRP is currently testing key support and resistance levels for a bullish move.
- The next few weeks are crucial to determine if XRP will break above resistance.
The XRP coin is presently going through a Wyckoff reaccumulation phase. Given the key support and resistance levels, it could be seen as a basis for a breakout. A prominent crypto analyst shared the chart detailing a number of important phases in this market structure. As shown by the Wyckoff method, currently XRP is moving between A and D. The chart highlights the basics of Spring, Test, and Jump Across the Creek, or JATC, which all denote that the market is preparing for an upward journey.
The Wyckoff method is a serious approach to market trend analysis, identifying the phases of accumulation and distribution. In this case, it can be seen that price movement in XRP is currently at sight or on its way into reaccumulation. The price has moved just to get into “spring” phase, wherein minor drops on prices are expected of early signals of upward movements.
XRP Price Movement Key Wyckoff Phases Now
According to Wyckoff theory, XRP price action can be traced through phases. Phase A is a downtrend price, but now it starts to be accumulated, which is followed by upthrusts in Phase B, when XRP is testing lower prices but is falling short in breaking up above resistance levels. Phase C sees the ‘spring,’ during which prices dip briefly below support levels. This is associated with a period of reaccumulation while pointing toward possible bullish mechanisms.
The test of the breakout level occurs in phase D. In this phase, XRP already secures some of the support levels and is prepping for a rise above resistance, which correlates with what the chart has for the ‘Test’ phase, where XRP is testing support under price levels. Finally, Phase E expects a market breakout above the resistance level, which will mark the beginning of an aggressive upward movement.
What Next for XRP? Is Breakout Not Far?
As XRP completes Wyckoff reaccumulation phases, traders are watching out for the breakout. The chart depicts the coin poised for future upward action primarily after surpassing the JATC thresholds. The price movement beyond these could imply the next target for upper resistance. Breaking out of these phases would lead to a giant price surge for XRP.
However, some traders remain on high alert, as they await support at those critical levels. Price movement has been very volatile, and a lack of holding current support is likely to lead to further consolidation. It will be interesting to see how XRP reacts in the next few weeks concerning a breakthrough in the resistance of prior bullish trends made.
