"Why isn't it falling even in a bear market?"...XRP, a massive compression signal just before a 31% market share explosion

▲ XRP

Despite the slowdown in the virtual asset market, XRP's market share chart continues to maintain a long-term bullish structure. This has led to an analysis suggesting that a price explosion, outperforming other altcoins, could occur in the future.

According to NewsBTC, a virtual asset media outlet, on May 22 (local time), crypto analyst Will Taylor, who operates under the name Cryptoinsightuk on X (formerly Twitter), diagnosed that XRP's market share (XRP.D) chart is still sending structural bullish signals despite its recent retreat from a major resistance level. Based on the long-term market share chart, Taylor presented a roadmap suggesting that XRP's market share, currently at 3.315%, could surge to 31.26% in the future. He explained that instead of being swayed by short-term market sentiment, focus should be placed on thorough market structure analysis.

Taylor's hypothesis is based on the fact that XRP has broken out of a multi-year downward consolidation range and successfully defended previous key support levels. Currently, on the weekly chart, XRP's market share has failed to fully break through the 6.127% resistance area, retreated, and is now consolidating within a falling wedge pattern. Taylor analyzed, "Looking at the XRP market share chart, it's rather difficult to maintain a bearish perspective. What we are witnessing now is merely the completion of a Wyckoff accumulation pattern, a breakout above the 3.315% key resistance, and a pullback within a falling wedge convergence zone after failing to break above the 6.127% high." He diagnosed that if selling pressure had completely dominated the market, trading volume would have surged, and downward volatility would have increased. Instead, trading volume is decreasing, and energy is compressing, showing a typical bullish continuation pattern.

The Relative Strength Index (RSI), a technical indicator, is also showing a downward trend along with price convergence, but this does not imply a structural collapse. This is because while the indicator itself is compressing within its own downtrend line, XRP's market share itself is firmly supported above the previous breakout zone of 3.315%. The fact that a strong past resistance level has now transformed into a support level and is being defended is a technically positive sign. A breakout above the convergence zone in the future could lead not only to a recapture of the 6.127% high but also to a rally expanding market share to 31.26% as it enters a long-term markup phase.

From the perspective of Wyckoff theory, which is central to this analysis, the current retreat is interpreted not as a mass sell-off but as an LPS (Last Point of Support) zone, a final support testing stage. XRP's market share, which solidified its bottom over a long period through a selling climax and secondary tests near the lows of 2020 and 2021, has completed a 'Creek' breakout, a signal of exiting the accumulation zone. Therefore, the target of 31.26% is not merely an optimistic arrow; the analysis that it is the final breather just before entering a full-fledged price upward trajectory after the accumulation phase gains traction. This bullish narrative remains valid as long as the 3.315% support level is not breached.

Taylor suggested that a massive catalyst is imminent for this technical completion to truly explode. Taylor emphasized, "Honestly, XRP's market share feels like it's waiting for the final catalyst before starting its next upward rally. Although it's a structure completely opposite to current negative market sentiment or common interpretations, the bullish continuation signals are so overwhelming that I would rather hear if there's any structural basis to argue for a decline at this point." Ultimately, the assessment is that the most notable technical challenge in the current virtual asset market is the timing when XRP's market share defends the 3.315% defense line and confirms an upward breakout.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*