XRP is once again drawing attention as technical analysts point to a chart pattern that previously led to one of its strongest rallies. A setup resembling a past consolidation phase is forming, raising the question of whether XRP could repeat a historic breakout that delivered gains of nearly 580%.
Earlier in 2026, XRP surged more than 31% before facing resistance around $2.41. Since then, price action has cooled, but analysts believe the current structure may be setting the stage for a larger move.
A recurring pattern from XRP’s past
Source: TradingView
Crypto analyst CryptoWZRD highlighted that XRP is following a structure similar to one seen roughly a year ago. At that time, the asset spent months trading sideways, frustrating both bulls and bears. That prolonged consolidation eventually ended with a sharp and aggressive breakout.
According to the analyst, XRP now appears to be in a comparable phase. If the pattern continues to develop in the same way, it could signal that another major expansion move is approaching.
Sideways price action preceded a major breakout
During 2024, XRP spent most of the year trading well below $1. Price remained locked in a narrow range, with support forming near $0.40 and resistance around $0.70 to $0.75. Multiple attempts to break higher failed, while buyers repeatedly stepped in to defend the lower boundary.
This extended period of compression eventually resolved to the upside. As market sentiment improved ahead of the U.S. elections, XRP broke out and delivered a rally of approximately 580%. That move placed XRP among the strongest performers of the cycle, significantly outperforming many other major assets.
While broader markets benefited from the risk-on environment of the Trump-era rally, XRP’s gains stood out due to their magnitude and speed.
XRP may be replaying the same setup
CryptoWZRD believes a similar structure is forming again. After peaking near $2.70 in late October, XRP entered a falling wedge pattern. This setup preceded a fourth-quarter decline of around 35%, mirroring the corrective phase seen in previous cycles.
Historically, falling wedges on XRP’s chart have often marked the end of extended consolidation periods. In past instances, these patterns resolved with strong upside momentum.
XRP has already started to recover from its Q4 pullback and is up nearly 14% year to date. The token is currently trading near $2.10 and continues to hold above the psychologically important $2 level, suggesting buyers are actively defending this zone.
If XRP were to replicate the magnitude of its previous breakout, a 580% rally from current levels would place the price near $14.28.
ETF inflows and institutional interest add support
Beyond technical patterns, fundamental data is also drawing attention. Since their mid-November launch, XRP exchange-traded funds have seen consistent inflows, attracting approximately $1.2 billion, according to SoSoValue.
This stands in contrast to other major crypto ETFs. Over the same period, Bitcoin ETFs recorded roughly $2.4 billion in outflows, while Ethereum ETFs saw close to $898 million exit, based on DefiLlama data.
A significant share of XRP ETF inflows has come from institutional investors. Many cite Ripple’s emphasis on regulatory compliance and legal clarity as a key reason for interest. In November, Ripple raised $500 million, pushing its valuation to around $40 billion.
XRP/BTC ratio hints at possible outperformance
While XRP’s spot price faces short-term volatility, longer-term signals are turning constructive. Analyst The Great Mattsby noted that the XRP/BTC pair is approaching a potential breakout above the monthly Ichimoku cloud for the first time since 2018.
Historically, such a move has often marked periods where XRP outperformed Bitcoin. If confirmed, this could align with early signs of cross-asset rotation as traders reposition at the start of the year.
At the same time, liquidity gaps and stop-driven moves continue to keep spot markets sensitive, prompting caution among short-term traders.
Final outlook
XRP’s current structure is drawing comparisons to one of its most explosive historical rallies. A familiar consolidation pattern, rising institutional exposure through ETFs, and improving relative strength against Bitcoin are combining to create a cautiously bullish narrative.
Whether XRP can truly repeat a 580% rally remains uncertain. However, the technical and structural signals now forming suggest that the market is closely watching for confirmation of a larger move ahead.
