XRP’s Chart Just Flashed A Textbook Bull Signal

XRP may be approaching one of the cleanest textbook continuation setups on its long-term chart, in a pattern that historically precedes trend continuation when confirmed.

Per an analysis by popular pseudonymous cryptocurrency specialist Egrag Crypto shared in an X post on January 12, XRP is now forming a classic breakout-pullback-hammer structure, and its completion could position XPR for its next major leg higher.

XRP Forms A Classic Breakout Retest Structure

Egrag highlights a three-stage technical sequence that traders watch closely in strong trend reversals. This includes a breakout above major resistance, a pullback to retest the breakout zone, and a bullish hammer candle at support. On XRP’s monthly chart, the structure is now unfolding in real time.

The price has pushed above a multi-year resistance band, is attempting to hold the breakout zone, and is beginning to print hammer-style rejection candles, signaling demand stepping in at former resistance. According to Egrag, this is exactly how sustainable bull trends often begin.

Why This Pattern Matters

This breakout-pullback-hammer formation is one of the most reliable continuation structures in technical analysis. It represents a regime shift from distribution to accumulation, a successful reclaim of prior resistance, and a strong buying pressure on retests.

When confirmed, the pattern frequently marks the transition from consolidation into trend expansion. Egrag explains that once confirmation appears, probability favors upside continuation.

Probability Favor Trend Continuation

Based on the historical behavior of this structure, Egrag outlines the following probability framework, including a 60-65% chance of a continuation higher, a 25-30% possibility of an extended consolidation, and a 10-15% bet for a deeper pullback if support fails.

In other words, XRP is currently sitting inside a statistically bullish zone, but confirmation is still required. The market is now waiting to see whether the breakout level holds.

The Line In The Sand: $1.60-$1.40 Zone

Every bullish structure needs an invalidation level. For XRP, Egrag defines the key support zone clearly: $1.60-$1.40 on higher timeframes. 

As long as the price remains above that band, the breakout structure remains intact.

If that zone fails, the setup resets. 

If it holds, XRP may be building the base for its next macro move.

A Setup That Often Precedes Explosive Moves

This same breakout-retest pattern has preceded major expansions across crypto cycles – from Bitcoin (BTC) to Ethereum (ETH) to XRP itself. This isn’t a prediction but structure, and structure is what drives long-term trends. 

As Egrag puts it, it’s going to be breakout -> pullback -> hammer, and then confirmation. The market is now approaching the moment where direction gets decided.

XRP price today

For the time being, XRP is changing hands at the price of $2.04, down 2.38% in the last 24 hours, declining 4.06% across the previous seven days, but gaining 0.41% on its monthly chart, per the latest data.

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