TL;DR
- Ripple’s cross-border token was recently rejected at a multi-month peak line of around $2.7 and now sits below $2.35.
- Despite this double-digit price drop in the matter of just a few days, a certain technical indicator has flashed a buy signal, which could lead to a trend reversal.
The chart by the popular crypto analyst Ali Martinez shows that the TD Sequential, which is used to determine the market exhaustion in either direction on various timeframes, has presented “multiple buy signals” on XRP’s hourly chart.
This comes after Ripple’s token failed to overcome the aforementioned $2.7 resistance on Monday and Wednesday and dropped to $2.3 earlier today, which represented a price drop of over 12% in a few days.
The price rejection aligned with Judge Torres’s decision to deny a joint motion filed by the US SEC and Ripple to end their lawsuit with an official settlement of $50 million.
Previously, Martinez indicated that XRP didn’t have any major resistance obstacles on its way to $3 and beyond. However, he warned that the most critical support is at $2.38, which could spell further troubles for the asset if it falls below it—something that happened in the past 24 hours.
What could also be regarded as a bearish sign is the lack of new users on the XRP network, since the average daily creation of new wallets sat at 3,500 a few days ago. According to Santiment, this number is far behind the leaders, Bitcoin (309,000 per day) and Ethereum (112,000 per day).
