XRP Signals Rally Despite Negative Funding

What to Know:

• An analyst suggests XRP may be primed for a significant rally based on historical accumulation patterns.
• This analysis arrives amid a broader crypto consolidation and recent XRP price declines.
• The potential rally could signal renewed institutional interest in XRP and Ripple, pending regulatory clarity and ETF developments.

XRP has faced bearish headwinds recently, retracing from earlier highs as the broader crypto market consolidates. Despite this, some market observers are spotting patterns that suggest XRP may be setting up for a substantial rally. This bullish outlook is predicated on historical price action and accumulation phases, which could be of interest to institutional investors looking for strategic entry points.

Historical Accumulation Patterns

One market analyst, Steph, has highlighted a recurring accumulation pattern in XRP’s price history. This pattern involves a period of consolidation marked by occasional price declines, followed by a sharp downtrend that ultimately precedes an explosive rally. The first instance occurred between 2015 and 2017, and the second from mid-2023 to late 2024. These patterns culminated in significant price surges, leading to peaks in 2018 and 2025.

Current Market Structure

According to the analysis, XRP has entered a similar accumulation phase after peaking in January 2025. This period has been characterized by consolidation and intermittent declines. Since October 2025, the downtrend has intensified, with XRP falling from $2.80 to around $1.84. If history repeats, this could be the final stage before a major upward move. The analyst suggests that selling XRP now could mean missing out on a potentially significant rally.

Analyst Perspectives

Other analysts share a constructive outlook for XRP. Chart Nerd, for instance, points to an ABC reset pattern, suggesting that the $1.80 to $2.00 level has flipped from resistance to support, potentially paving the way for an upswing. These technical analyses provide additional layers of insight for institutional investors assessing XRP’s near-term potential.

Community Sentiment and Catalysts

Sentiment within the XRP community remains cautiously optimistic, with attention focused on several potential catalysts. These include the resolution of the SEC lawsuit, the potential launch of XRP ETFs, and the pending Clarity Act. These developments could provide the necessary regulatory clarity to unlock further institutional investment in XRP. While timing remains uncertain, these factors collectively lay the groundwork for a possible rally in the coming year.

Institutional Implications

For institutional investors, the potential for an XRP rally hinges on a confluence of factors. Favorable regulatory outcomes, the introduction of accessible investment vehicles like ETFs, and continued development within the Ripple ecosystem are crucial. While historical patterns offer a guide, market dynamics and regulatory landscapes are constantly evolving. Prudent risk management and due diligence remain essential.

In conclusion, while XRP has experienced recent price weakness, historical accumulation patterns and potential catalysts suggest a possible rally on the horizon. Investors should weigh these factors carefully, considering both the opportunities and risks inherent in the digital asset market.

Related: XRP Forecast: Sideways Trade Signals Bearish Trend

Source: Original article