XRP Price: Testing Pattern for 1,573% Surge?

What to Know:

• XRP has retested its 21-month exponential moving average (EMA), a level that historically precedes significant price surges.
• This technical pattern occurs amidst a broader market downturn, adding a layer of complexity to potential future price movements.
• Institutional investors should watch how XRP interacts with this EMA, as a breakout could signal renewed momentum, while a failure to hold might indicate further downside risk.

XRP is at an interesting juncture, having recently revisited a key technical level that has historically acted as a launchpad for substantial rallies. Market observers are pointing to the 21-month exponential moving average (EMA) as a critical area to watch. The question now is whether history will repeat itself, or if current market conditions will lead to a different outcome.

XRP’s Historical Retest of the 21EMA

Historically, XRP’s interaction with the 21-month EMA has been notable. One of the most striking examples occurred in December 2017. After an initial rally, XRP consolidated, eventually retesting the 21 EMA. This retest was followed by an explosive surge that propelled XRP to its all-time high in January 2018, marking a 1,573% increase from the retest level.

A similar pattern played out more recently. During XRP’s consolidation throughout 2024, a retest of the 21 EMA preceded a significant rally that coincided with the U.S. elections in November 2024. This rally saw XRP surge to $3.4 by January 2025, demonstrating the EMA’s potential as a leading indicator.

Current Market Downtrend

Despite occasional rallies, XRP has been in a bearish trend for most of 2025. This downtrend has led to a retest of the 21-month EMA, a level that now acts as a critical support. The ability of XRP to hold above this EMA could determine its short to mid-term trajectory.

Potential for an Explosive Surge

Market commentators suggest that if XRP follows its historical pattern, another explosive surge could be on the horizon. While no specific price predictions have been made, replicating even half of the 2017 surge would result in a substantial price increase. This potential upside makes the current level a key area of interest for investors.

Community Analysis and Sentiment

Adding to the technical analysis, community analysts have identified patterns suggesting an imminent XRP run. One analyst noted that XRP has historically experienced a period of discouraging price action before an eventual surge. This pattern, observed in both 2016 and 2024, appears to be playing out again, further fueling speculation of an upcoming rally.

Considerations for Institutional Investors

For institutional investors, the current situation presents both an opportunity and a risk. The historical performance of XRP around the 21-month EMA suggests potential upside, but the ongoing market downtrend adds a layer of uncertainty. Investors should closely monitor XRP’s price action around this level, considering it as one of many factors in their overall investment strategy.

In conclusion, XRP’s retest of the 21-month EMA is a significant technical event that warrants close attention. While historical patterns suggest a potential for an explosive surge, current market conditions require a cautious approach. Investors should weigh the technical analysis alongside broader market trends and community sentiment to make informed decisions.

Related: XRP Buy Signal: Rally May Target Divergence

Source: Original article