XRP Breakout Signals Revealed as Dollar Weakens

XRP breakout patterns are catching traders’ attention as a prominent analyst points to a possible surge linked to a weakening U.S. Dollar Index (DXY). This observation comes amid new developments in macroeconomic trends and technical signals that may pave the way for XRP’s potential rally.

Market commentator Vandell Aljarrah, co-founder of Black Swan Capitalist with his brother Versan Aljarrah, recently shared a striking chart. It reveals a pattern that has repeated multiple times over the past seven years: significant XRP gains tend to coincide with major downturns in the DXY. According to Vandell, this correlation may be hiding in plain sight and could hint at the next big move for Ripple’s native token.

Historical Correlation Between XRP and the DXY

The connection first surfaced in the 2017–2018 crypto bull cycle. After peaking at 103.8 in January 2017, the DXY dropped steeply to around 88 by early 2018. In response, XRP rose from a low of $0.005 in February 2017 to reach an all-time high of $3.8 by January 2018, mirroring the DXY’s bottom at the time.

As expected, once the Dollar Index rebounded, XRP’s price pulled back, establishing what appeared to be a negative correlation. Interestingly, in mid-2021, the DXY crashed again—this time to 89. The result? XRP took off, reaching $1.96 before losing momentum and correcting afterward.

The trend wasn’t an isolated event. XRP experienced another leg up in late 2024, just as the DXY fell to 100.6. Although this move wasn’t as explosive, the gains were still impressive: XRP rallied by nearly 600%, topping out at $3.4 in January 2025.

New Signals and Predictions

Now, economic policies in the United States are exerting downward pressure on the dollar. With the DXY declining once again, Vandell suggests that it may return to the 88 level seen during its 2018 bottom. If history repeats, XRP could be on the verge of another significant breakout.

Reinforcing that possibility is XRP’s historical price behavior within chart structures. Between January 2018 and October 2024, it traded within a large symmetrical triangle. The breakout in November 2024 broke this long-term formation, signaling a shift in trend. However, the surge to $3.4 in January 2025 failed to hold, and XRP entered a new, smaller symmetrical triangle—appearing as a bullish pennant.

In what may be another turning point, recent trading above the $3 mark helped XRP break out of this latest triangle, signaling potential for further upside. “This setup has been hiding in the open,” Vandell commented, suggesting most analysts have overlooked this key development.

Whale Accumulation Adds Fuel

Supporting the bullish narrative, crypto expert Ali Martinez recently reported that large XRP holders, often referred to as whales, have purchased over 2.2 billion tokens in just one week. At XRP’s current price of $3.14, these holdings are valued at approximately $6.82 billion. You can see his findings in this tweet.

This level of accumulation typically indicates strong confidence in the asset’s future performance. If whale behavior is any guide, XRP’s price action may soon reflect that optimism, especially under the current macro conditions.

What’s Next for XRP?

All eyes are now on whether the DXY will revisit the crucial 88 level. If it does, past data suggests XRP could follow with a dramatic rally. Traders and investors alike are monitoring these patterns closely as technical and macro indicators converge once again.

Related: XRP Price: $12M Max Pain for Bears

The XRP community, buoyed by renewed momentum and large-scale accumulation, continues to build a case for a bullish future. Time will tell if the breakout is indeed imminent—but history, as Vandell points out, might already be providing the answer.