XRP forms an example of a chart that eventually led to a 1,500% price increase

The weekly price chart of XRP (XRP) is similar to a technical pattern that previously marked a major bearish period before a sharp upward reversal.

Key considerations:

• XRP’s weekly fractal is similar to the 2017 low before the 1.577% rally.

• The increase in the price of XRP requires a sustained movement from the resistance zone of $2.

• A decrease in exchange balances indicates an accumulation of XRP.

The XRP Fractal is headed for a massive price rally

A long-term fractal comparison between the periods 2017-2018 and 2024-2026 shows that XRP’s sharp sell-off from the multi-year highs of $3.66 shows a pattern that formed before a sharp price reversal.

related to: XRP holders face $50 billion windfall as it falls below $1.40

On the weekly chart, XRP’s decline to $1.10 resembles a retest of the lower symmetrical triangle line from 2017, when the price dropped to $0.12, marking a local bottom.

“There’s a chance we’ll see this general trend continue in the same way,” crypto analyst Young said in a comment, adding:

“The execution of this means that there is now only a temporary pullback before a move well above $20.”

In 2017, XRP consolidated within the triangle as a leverage recovery and finally broke above the triangle trendline and gained 1,577%.

Using this framework, XRP bulls are required to push the price above the $1.78-$2.30 resistance to confirm a sustained upside breakout.

Notice that here the upper line of the triangle intersects at $2, the 100-week simple moving average (SMA) and the 50-day SMA.

XRP’s UTXO Price Distribution (URPD) data shows large supply clusters that remain above the spot price. The $2 level represents 3.6% of XRP’s supply, and the $1.80 level represents 3.15%, which is strong resistance.

As reported by Cointelegraph, buyers should break and hold XRP price above the descending line of the descending channel pattern on the daily chart at $2 to signal a long-term trend reversal.

The supply of XRP on exchanges continues to decline

According to CryptoQuant, XRP’s multi-party delta in daily deposit/withdrawal transactions, a metric that tracks the net number of XRP transfer transactions across 15 major crypto exchanges, has fallen to a record low.

“When the metric goes down, it shows that more investors are withdrawing XRP to external wallets,” CryptoQuant analyst Amr Taha said in a QuickTake analysis.

“This behavior often reflects long-term accumulation and confidence.”

This was confirmed by fellow analyst Darkfost, who said that “the number of XRP withdrawal transactions on Binance has shown some sudden spikes in recent days.”

This includes more than 14,000 transactions exiting Binance on March 6, as shown in the chart below.

This suggests that investors “collect and then transfer their tokens to private wallets, rather than keeping them on an exchange,” Darkfost added.

As a result, the balance of XRP on exchanges fell to 12.9 billion on Wednesday, the level last seen in May 2021.

Meanwhile, after Goldman Sachs emerged as the largest ETF holder, inflows from XRP ETFs in the US have declined, indicating institutional confidence in XRP’s long-term potential.