Analyst: This Pattern Says XRP Will Breakout and Back Test before Explosion

Crypto analyst XRP Captain has shared a technical perspective on XRP that contrasts sharply with prevailing market sentiment.

In a recent post, the analyst stated that many market participants appear to be panic-selling. The daily chart suggests the price action may represent a breakout followed by a back test rather than the start of a sustained decline.

The observation emphasizes chart structure over short-term emotional reactions, encouraging a closer look at the technical context behind recent price movements.

The comment was accompanied by a daily XRP/U.S. dollar chart from Bitstamp, highlighting a long-standing descending trendline that had guided price action for several months. XRP Captain’s interpretation centers on how price interacts with this trendline after a decisive move through it, which is often a focal point in technical analysis.

Breakout and Retest on the Daily Timeframe

According to the chart shared, XRP had been trading below a clearly defined descending resistance line stretching from earlier highs into late January.

The price eventually moved above this line, signaling what XRP Captain interprets as a breakout on the daily timeframe. Following this move, XRP retraced toward the same trendline area. The price briefly dipped below and then attempted to reclaim levels near the former resistance.

XRP Captain described this behavior as a potential breakout and back test, a pattern in which price revisits a prior resistance level to assess whether it can hold as support. In the analyst’s view, this type of retracement does not automatically invalidate the breakout. Instead, it can represent a process of market confirmation before any stronger directional move develops.

Panic Selling and Market Behavior

The analyst specifically addressed what he sees as panic selling among traders during this pullback. His statement implies that the emotional response to short-term downside movement may not align with the broader daily chart structure.

By focusing on the higher timeframe, XRP Captain suggests that the recent volatility could be misinterpreted as weakness rather than a normal phase within a developing technical setup.

The chart also shows a sharp upward move projected after the retest zone, reflecting the analyst’s expectation of a significant continuation if the breakout structure holds. While this projection is not presented as a certainty, it illustrates how XRP Captain views the current consolidation as transitional rather than terminal.

Outlook Based on Technical Signals

XRP Captain’s analysis remains grounded in chart behavior rather than external narratives or short-term price fluctuations. His core message is that the daily chart may be signaling a setup that contrasts with the fear visible among some market participants. The emphasis on a breakout and back test highlights the importance of patience and context when interpreting price action.

As with all technical analysis, the scenario described depends on how the price continues to behave around key levels identified on the chart. XRP Captain’s post does not guarantee an outcome but underscores that, from his perspective, the current structure may still support a bullish continuation if the technical conditions remain intact.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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