XRP pierced its 200-day moving average overnight, adding to the mounting volatility that’s gripping the broader crypto and traditional markets. As financial markets brace for what could be a turbulent Monday, seasoned analyst Blockchain Backer is offering a measured perspective on XRP’s price action, suggesting that the worst may be nearly over, even if short-term pain persists.
In a recent post on X, Blockchain Backer acknowledged the technical breakdown but emphasized a sense of cautious optimism. Despite XRP slipping beneath a key long-term support indicator, he interprets the current move as part of a broader capitulation — a necessary phase in market corrections where investor sentiment hits its lowest point and short positions begin to close out.
XRP broke through its 200-day moving average overnight as Monday is still set to be volatile in all markets.
However, I still see hope in an otherwise murky and uncertain environment. That it is in capitulation now… that we are in the "shorts closing phase." It would still… pic.twitter.com/KaHF6dfZC5
— Blockchain Backer (@BCBacker) April 7, 2025
The Capitulation Phase: A Sign of Nearing the End?
Capitulation phases are typically marked by panic selling, liquidations, and high volatility. They often represent the final leg of a correction before a trend reversal. According to Blockchain Backer, XRP may still have lower levels to test, but the structural behavior of the market suggests that this is not an “end of the world” scenario. Instead, he proposes that we are nearing the end of the ABC corrective pattern — a classic Elliott Wave structure in which the market completes a three-phase decline before resuming its larger trend.
The current drop, though unsettling for many investors, could be part of wave C, the final segment of this corrective structure. If accurate, it would imply that XRP is close to finding a bottom, offering potential entry points for longer-term holders.
A Buy Zone Ahead?
Blockchain Backer further noted that if XRP were to dip into the $1.40–$1.50 range, he would see it as an opportunity to accumulate. This aligns with his broader view that the current price weakness is not permanent and that conditions are being set for a rebound once the correction exhausts itself.
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Such insights come at a time when investors are trying to make sense of rapidly shifting technical levels across the board. With macroeconomic uncertainty and regulatory headwinds still looming, technical analysts are increasingly turning to historical chart patterns and wave theory to predict what may come next.
Broader Market Volatility
XRP’s movement is unfolding amid a larger backdrop of instability across global markets. As major indices face pressure and crypto assets experience uneven momentum, traders are watching indicators like moving averages and volume spikes for clues. The break below the 200-day moving average is undeniably significant, yet if Blockchain Backer’s read on the market is correct, it may not be a harbinger of a deeper crisis but rather a necessary purge of weak hands before strength returns.
Looking Ahead
While short-term volatility and further downside are still in play, Blockchain Backer’s take injects a dose of clarity into an otherwise murky environment. If XRP is indeed in the final throes of a correction, the coming days and weeks could define its trajectory for the rest of 2025. For now, all eyes remain on the charts, key support levels, and investor behavior as the market seeks a bottom and builds the foundation for what’s next.
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 urged to do in-depth 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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