XRP Investors Anticipate Potential Breakout Amid Technical Indicators
Investors in XRP may have to brace themselves for a prolonged wait before the digital asset makes a significant upward move. A prominent technical indicator points to potential further losses, suggesting caution in the foreseeable future.
TD Sequential Indicator Signals Possible XRP Decline
According to a notable cryptocurrency analyst, Ali Martinez, the TD Sequential indicator has issued a sell signal for XRP. This development was shared in a social media post on February 26, highlighting the likelihood of additional declines in upcoming trading sessions.
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The TD Sequential is known for identifying points of trend exhaustion and possible reversals. Specifically, a ‘9’ candle within the indicator suggests an overextended trend, signaling a possible pause or reversal. Conversely, a ‘1’ candle might indicate the commencement of a new cycle.
Historical Accuracy of the TD Sequential Indicator
Martinez has emphasized the indicator’s precision in forecasting XRP’s price movements since 2022. Instances of ‘9’ signals have historically preceded price pullbacks, while other setups have effectively predicted price rallies.
Martinez remarked, “The TD Sequential indicator has consistently demonstrated its accuracy in predicting XRP’s price direction since 2022. Currently, it flashes a sell signal on the two-week chart, suggesting an impending correction.”
Should this pattern unfold as anticipated, XRP risks breaching the crucial $2 support level. This level has been pivotal for investors aiming for a new record high for the asset. Earlier reports indicated that Martinez had warned of a potential significant crash, targeting $1.6 as a possible low.
Influence of Large-Scale XRP Holders
While the broader cryptocurrency market downturn has contributed to XRP’s recent sell-off, on-chain data supports Martinez’s analysis.
In another social media update on February 26, Martinez cited data from Santiment that revealed large XRP holders shed over 370 million tokens within four days. This considerable sell-off implies that major investors are either taking profits or hedging against further declines. Historically, whale activity has been a reliable market trend indicator. Should the selling pressure persist, XRP may face challenges in finding immediate support.
Current XRP Market Insights
In the short term, cryptocurrency expert Egrag Crypto has noted that XRP is at a pivotal stage, with key levels to monitor at $2.35 and $2.20.
According to the expert, a close above $2.35 could revive bullish momentum, potentially pushing XRP back into an upward trend. Conversely, a drop below $2.20 heightens the risk of testing lower support at $2, where market wicks are anticipated.
Current XRP Price Analysis
At the time of writing, XRP is trading at $2.26, having gained over 3% in the last 24 hours. However, the asset has experienced a decline of nearly 13% over the past week.
XRP faces significant resistance just below the 50-day simple moving average (SMA) of $2.69. Nonetheless, its long-term bullish outlook remains promising, as the 200-day SMA stands at $1.47.
Should the broader cryptocurrency market improve, XRP may potentially experience a decisive upward movement. The market’s current uncertainty stems from factors such as geopolitical tensions and Bitcoin’s bearish momentum.
In the long term, positive developments, such as the potential approval of a spot XRP exchange-traded fund (ETF), could provide a favorable outlook for XRP.
