XRP Forms ‘Power of Three’ Pattern After 18% Drop, Analyst Says Expansion Phase Could Be Next

XRP could be preparing for a major move if a widely followed chart pattern plays out as expected, according to CoinvoTrading.

The analyst believes many investors are giving up on XRP at the worst possible time. He pointed to what he described as a textbook “Power of Three” (PO3) pattern forming on the daily chart.

Three-Phase XRP Structure

The Power of Three pattern is a popular market structure among technical traders. It consists of three stages: accumulation, manipulation, and expansion.

According to CoinvoTrading’s chart, XRP spent several months trading within a wide range, forming the accumulation phase. The recent break below that range is viewed as the manipulation stage.

This phase typically sees prices move against market expectations. It forces weaker holders out of their positions before the next trend develops.

CoinvoTrading believes XRP is currently in this manipulation phase. If the pattern continues to unfold, the asset could soon enter the expansion stage, which is usually marked by a strong upward move.

The chart projects a rally toward the $2.60–$2.80 range, representing a gain of more than 145% from the current price.

XRP Now Recovering from Steep Pullback

Indeed, XRP has experienced significant volatility in recent weeks. The token traded near $1.33 at the start of the month before falling to a weekly low of around $1.05. That decline represented a drop of roughly 18%.

Despite the correction, XRP’s price has begun to recover. CoinMarketCap data shows the token is trading at about $1.14, up roughly 3% over the past 24 hours. The rebound has helped trim recent losses, though XRP remains below its monthly highs.

The asset remains down approximately 21% over the past month. Moreover, XRP is still down around 38% year-to-date, reflecting the broader bearish trend since the start of the year.

CoinvoTrading argues that the recent weakness may be part of a manipulative move designed to shake out investors. He stressed that, based on historical market behavior, a major uptrend could ultimately follow.

XRP Buy Signal Emerges

Notably, as The Crypto Basic reported earlier, XRP has flashed a TD Sequential buy signal on its 3-day chart after falling from $1.33 to $1.05. Analyst Ali Martinez noted that similar signals on higher timeframes have historically led to short-term rebounds.

However, on-chain data suggests caution. Whale transactions above $1 million have dropped 57%, from 157 to 67, over the past nine days. This implies that major investors are remaining on the sidelines.

Meanwhile, whale wallets have sold or redistributed about 60 million XRP over the past week, indicating continued selling rather than accumulation.

Martinez believes XRP could see a brief relief rally, but sustained upside may remain limited unless whale buying returns. He also identifies $0.90 as a key long-term support level and a potentially attractive accumulation zone if the price revisits it.