XRP Gears for Major Upsurge as It Enters Phase D of Wyckoff Model: Analyst

XRP could be gearing up for a price surge as market analyst Steph suggests the altcoin has entered Phase D of the Wyckoff model.

Steph disclosed this in a recent analysis on X, as the market continues to trade within a range amid the consolidation phase. Notably, Phase D is an important stage in the model, suggesting XRP may soon break out into a bullish trend. 

For the uninitiated, the Wyckoff model identifies market cycles with five different phases. Each phase represents different market actions, from selling pressure to accumulation, and finally, a strong price rally. 

XRP Moves Through Wyckoff’s Phases

Notably, XRP started Phase A in Q2 2021 with a sharp decline, which the model calls the Selling Climax (SC). During this phase, XRP’s price dropped from the $1.96 high of April 2021 to a floor of $0.31 in September 2022. This marked a period where sellers dominated the market. 

However, a minor rebound called the Automatic Rally (AR) followed this bearish phase, resulting in a recovery that led to $0.53 in October 2022, marking the end of Phase A. This rebound showed the first signs of buyers beginning to absorb the selling pressure.

In Phase B, XRP traded in a range between $0.35 and $0.58, briefly spiking to $0.94 in July 2023. This stage is the “Building the Cause” phase, where smart money began accumulating XRP. The SEC case summary judgment last July bolstered this accumulation.

Notably, XRP experienced multiple Secondary Tests (ST), where the price tested both the SC and AR levels. These tests help confirm the trading range. Ultimately, Phase B ended in October 2023, with XRP changing hands at $0.66.

The next stage was Phase C, where a Spring occurred. The Spring is a final test of the market’s strength, leading to a temporary dip in price. For XRP, this dip took the price to $0.38 in July this year before a rebound above $0.65 four weeks later.

This phase is important as it shakes out weak hands, trapping sellers before the real move up begins. After the Spring, XRP’s price returned to its trading range, confirming that buyers were firmly in control.

XRP Builds Strength in Phases D and E

Now, XRP has entered Phase D of the Wyckoff model. In this stage, prices begin to rise consistently. For XRP, this upward momentum is already visible, with its price moving from $0.50 to the $0.66 top late last month.

One of the most important aspects of the Phase D is the Last Points of Support (LPS), where minor pullbacks occur, but they form higher support levels each time. These pullbacks serve as platforms for the price to move higher.

If XRP continues to follow this model, the next stage will be Phase E. In this phase, the price rallies massively as the uptrend becomes fully established. According to Steph’s chart, XRP price could surpass the $2.8 level during this phase.