Expert Says The Longer The XRP Base, The Bigger The Breakout. Here’s why

XRP has spent years moving through different market cycles, but Digital Asset Investor believes that lengthy price history could work in the cryptocurrency’s favor.

He suggested that XRP’s longer consolidation period makes the cryptocurrency particularly interesting under this technical analysis principle.

Tom Lee Explains Why Longer Bases Matter

In the video, Lee discussed Ethereum’s position in the crypto market, describing it as the most neutral infrastructure. He also referred to the network’s progress while noting that ETH was trading around $2,700 in the example he presented.

Lee pointed out that Ethereum had remained around similar price levels for an extended period despite network activity. He then explained the technical principle behind his observation.

“The longer the base, the bigger the breakout,” Lee stated.

The idea is that an asset can spend a long time trading within a relatively narrow range before making a significant move beyond it. Traders who follow this approach look at how long the price consolidates when assessing breakout potential. However, an extended base does not guarantee a larger price increase.

Digital Asset Investor Turns to XRP

After displaying Lee’s comments, Digital Asset Investor applied the same principle to XRP. He asked viewers to consider which cryptocurrency had maintained a longer price base than Ethereum before answering.

“That would be XRP,” he said.

His comparison focuses on XRP’s lengthy history of price movements and consolidation. The cryptocurrency has passed through several market cycles, spending extended periods trading below previous highs.

Digital Asset Investor believes this history gives XRP an interesting position when applying Lee’s reasoning. If XRP eventually breaks above its established trading range, the duration of its consolidation could become an important part of the technical analysis surrounding that move.

Comments on XRP’s Potential

X Finance Bull Academy also responded to the idea that prolonged consolidation could precede a significant price move.

“The longer XRP consolidates, the more exciting that eventual breakout could be,” the account stated.

The comment reflects a view similar to Digital Asset Investor’s comparison, with both pointing to XRP’s extended price history when considering its potential for an upward move.

For XRP holders, the next important development would be a sustained break above resistance levels.