XRP could be on the verge of a significant breakout by Q4, but a key technical pattern on the charts must first play out to set the stage. Recent price action suggests the digital asset may experience a short-term decline before embarking on a strong rally to new all-time highs later this year.

Technical analysts have identified a potential fractal repeating from XRP’s 2017-2018 bullish cycle. This fractal pattern has reemerged multiple times on XRP’s long-term chart, including in 2021 and potentially now in 2024. If history follows a similar path, XRP could be building momentum for another explosive upward move.

Crypto analyst @DirecksCrypto recently highlighted how this fractal is developing once again. According to their analysis, XRP appears to be transitioning from a reaccumulation phase into a potential markup phase. The current chart closely mirrors the structure seen before previous rallies, hinting that a bullish move could be ahead if the pattern completes.

However, the transition to this next phase likely requires one more downward correction first. Historical patterns suggest that XRP may dip briefly before bouncing off key support—an essential move to reset market conditions and build further buying pressure. The crucial level to watch now hovers around the $0.48 mark. This zone has acted as a strong support and was also an area of consolidation during past parabolic runs.

Whale Activity Shows a Bullish Undercurrent

Supporting the bullish thesis is notable whale activity in recent weeks. According to data from on-chain analytics platforms, major XRP holders have been accumulating the token significantly since January 2024, even as prices remained rangebound.

This accumulation trend aligns with what was observed during past major XRP rallies. Before the 2017 surge and the 2021 rally, whales had similarly increased their holdings while retail interest remained subdued. The same pattern appears to be unfolding now—suggesting that institutional or high-net-worth investors may be positioning ahead of a major breakout.

One prominent accumulation zone aligns with the earlier-mentioned $0.48 level, reinforcing it as a critical area for bulls to defend. If XRP holds this range and builds momentum with whale support, the asset could be primed for a powerful rally through resistance.

Volume and Sentiment to Play a Supporting Role

Aside from technical patterns and whale moves, market sentiment and trading volume will be key in confirming any breakout. Analysts warn that without sufficient volume expansion, price rallies may lack sustainability. XRP’s previous bull runs have all featured surges in trade volume—an element that will need to accompany any move higher in Q4.

Investor sentiment toward Ripple’s ongoing regulatory situation with the SEC may also influence XRP’s performance. Continued positive outcomes or resolutions in Ripple’s legal battle could add fuel to a bullish breakout narrative, especially if combined with strong on-chain fundamentals and favorable technical structure.

For now, XRP investors and traders will be watching how the asset behaves in the coming weeks, especially around the vital $0.48 support. If history is any guide and the chart pattern completes once more, Q4 could offer a significant upside opportunity for XRP.

Fractal price structure could signal an XRP bull run in Q4.

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

For deeper chart insights and real-time analysis from DirecksCrypto, followers can check their updates on @DirecksCrypto.