Phase A:
- The volume of phase A increased but the price only decreased slightly (about 50% of the most recent uptrend). This is a sign that some weak hands are selling (taking profit) but large institutions have absorbed this supply.
Phase B:
- In the early stage of phase B, the price moves within a narrow range and low volume, but then the price increased with a large range and volume increased. As a result, the price successfully broke through the resistance level drawn from the peak BC. This indicates that the selling side has exhausted and the buying side is dominating.
Phase C:
- On February 3, 2025, the price dropped sharply, breaking through the support level but immediately rebounded, forming a Pinbar candle with a surge in volume. This is a sign that weak hands are finally liquidating. The reason could be that $XRP has been sideways for a long time causing sentiment to become frustrated and deciding to exit the market. However, since the supply here is very large, a retest is needed to confirm the exhaustion of the supply.
- From February 25 to March 1, the price tested the support zone with quite good volume. The correlation between price and volume indicates that the supply here has been absorbed. The strong bullish candle on March 2 confirms that the test was successful.
>>> Thus, it can be said that currently $XRP is in the early stage of phase D, however, the overall context at this time does not allow for a strong increase to occur. Therefore, it is very likely that the price will continue to consolidate around the support zone while waiting for positive news, after which the price will rise sharply and $XRP will officially enter a bullish trend.
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