Ripple's native token, XRP, may be gearing up for another rally as its current price behavior mirrors bullish Q4 cycles of past years. Historically, XRP has demonstrated significant movements during year-end trading.
Previous XRP Trends in Q4
During its last Q4 surge, XRP skyrocketed more than 290% from a $0.50 base, peaking near $2.80 in December before retracing to test $2 support. This cycle was driven by long-term holders securing profits, exceeding $2 billion.
On-Chain Support Signals
Despite the sell-off, XRP demonstrated resilience, rebounding by 6.45% the following day after dipping to $3, reinforcing the strength of support at that level. Historical analysis suggests that if this support holds, XRP may replay its previous cycle, leading to another price increase.
Role of Long-Term Holders and Market Sentiment
Long-term holders remain a key factor in XRP's volatility. As XRP approaches their break-even points, they tend to exit positions, creating selling pressure. However, the resilience of current support levels has renewed optimism among bulls, suggesting a potential breakout could occur if market sentiment turns positive.
Given the current market conditions and historical data, XRP is on the verge of potential growth, and market watchers remain alert to its further movements.
