XRP is trading in a technical zone that mirrors conditions before its last major breakout, according to market analysts tracking momentum indicators on higher timeframes. The Stochastic RSI on the 3-week chart has dropped to 0.00, a level last seen at the depths of the 2022 bear market, while fractal patterns suggest a familiar accumulation phase may be forming.
What Happened: Momentum Reset
Steph is Crypto noted that XRP's Stochastic RSI on the 3-week interval reached 0.00, representing total compression of the oscillator.
This signal has occurred only once before during the 2022 bear market bottom, indicating selling pressure has reached exhaustion.
The technical development suggests downside risk is structurally limited at current prices. Long-term holders appear to be absorbing available supply, transitioning from distribution to strategic positioning, according to the analysis.
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Why It Matters: Historical Precedent
Altcoin Pioneers identified a fractal pattern on XRP's 3-day chart that closely resembles the 2016-2017 market cycle. Both periods featured prolonged ABC corrective phases before explosive rallies, with the current structure showing the ongoing 2025-2026 correction aligning with the final C-wave down to the $1.87 region.
The pattern suggests XRP may be nearing the end of a shakeout phase, though analysts note this does not guarantee immediate recovery.
When similar technical conditions emerged in previous cycles, they preceded extended accumulation periods before major upward moves.
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