- XRP dominance broke a long trendline and moved over the 50 SMA, and now forms a pattern seen before.
- The chart shows a clear shift in direction after a three-month fall as bulls work to build pressure.
- Traders watch for a rally setup as the breakout looks close to the move that formed the last strong push.
XRP dominance is attempting to break its downward pattern after a steady decline that started in July, and the latest chart shows a clear trendline breakout followed by a clean move above the 50 SMA, which matches a setup seen during a previous rally phase.
Trendline Break Signals a Shift in Market Structure
The chart shows a long red trendline that capped XRP dominance for several months. The line was tested again in early November. XRP dominance then broke above the line with a sharp move. The breakout happened at the same point where the 50 SMA turned upward. This combination appeared before a major move in the earlier cycle. The candles now sit above both the SMA and the trendline. Traders view this structure as an early shift in trend.
The last time XRP dominance broke a similar structure, a large move followed. The chart highlights that event using a blue arrow. The move lifted dominance sharply in a short time. The same pattern now forms once more. This alignment is what traders monitor closely. The chart shows the breakout label near the new trendline zone. This suggests market interest now returns to this level for guidance.
Three-Month Decline Leads to a Key Reversal Point
XRP dominance has fallen since July. The chart marks three clear lower highs. Each high respected the trendline until the latest breakout. This new push broke the pattern. The breakdown zone appears finished. The 50 SMA moved sideways before turning up. That shift signals stronger demand for XRP relative to other assets.
The current move now sits at the same stage as seen before the last strong rally. That cycle followed a long decline and then a breakout. The chart mirrors that event. This repeat draws attention from traders who follow structural cycles. They study the breakout zone and SMA flip closely.
Rally Setup Forms as Bulls Build Pressure
The chart places a purple label that reads “Rally Upcoming.” It sits above an upward arrow. This shows the path that followed the last breakout. The market now waits to see if this path repeats. The question now is simple yet critical for investors: Can XRP dominance hold this breakout long enough to trigger the same two-stage rally seen before?
The structure matches well with the earlier pattern. Bulls must hold the breakout level. The chart indicates this zone as the key support. If held, it may form the same upward structure seen before. Traders now monitor the next candles closely. The market may see stronger moves if the breakout remains valid.
