Raoul Pal, CEO of Global Macro Investor, suggests that XRP is poised for a new breakout after completing long-term consolidation cycles. Through a chart shared on his personal X account, Pal highlights that the altcoin has formed wedges and descending triangles, structures that historically result in upward breakouts. According to Pal, the current outlook bears similarities to the last two cycles, increasing the potential for a new parabolic move.
XRP's Long-Term Chart Similarities
Pal’s focus on chart similarities reveals the consolidation phases XRP has experienced in the past. The chart illustrates that the altcoin has demonstrated strong upward movements following prolonged periods of compression. Notably, the sharp rise from $0.20 to $2 in 2021 serves as the most striking example of these cycles. Pal emphasized that the current technical structure indicates a similar trend.
According to market observers, these similarities are not coincidental. XRP's recurring chart formations in the past bolster investor expectations for a new leap. Falling wedge formations, which historically lean towards upward breakout probabilities, further highlight XRP's technical outlook. Pal's forecast has stirred excitement within the XRP community.
The Significance of the $3 Resistance
Despite positive expectations, XRP has yet to surpass the $3 mark. At the time of writing, the altcoin is trading at $2.91, pressured by general market weakness. Sweeping selling pressure is preventing XRP from gaining momentum, even amidst strong technical signals.
Analysts underscore the psychological barrier of the $3 level. Overcoming this resistance might lay the groundwork for XRP to embark on another parabolic movement, akin to its historical cycles. However, the short-term market outlook will be pivotal. Should the market recover, the altcoin might develop a sustainable movement above $3.
In essence, the technical patterns suggest potential upward movement, yet broader market conditions will be the key determinant.
