2 Metrics Indicate Ripple (XRP) Price Faces Trouble After Recent Surge to $2.60
TL:DR;
- XRPs price went on an unexpected run on Saturday night, surging to a multi-week peak of $2.6 before correcting slightly.
- However, some on-chain metrics suggest that the asset could face trouble in the following days, especially if it fails to close above $2.47.
As reported on Saturday evening, XRPs rally drove the asset from $2.33 to $2.5 and later to $2.6, which represented an 11.5% surge within less than 24 hours. Although the asset has lost some steam since then and currently sits at $2.51, its still over 6% up on the day.
This came shortly after reports emerged that whales had amassed more than a billion XRP tokens within a mere 48-hour period during the most recent correction in the middle of the business week.
However, this is where the popular crypto analyst Ali Martinez sounded the alarm about a potential drawback for XRPs price.
At first, he pointed out that the TD Sequential, a technical indicator used to show the market exhaustion in either direction, had flashed a sell signal on the 4-hour chart. Nevertheless, this bearish formation will be invalidated if the asset closes above that line, which it still maintains.
The TD Sequential presents a sell signal on the $XRP 4-hour chart, anticipating a brief correction. The bearish formation will be invalidated if #XRP closes above $2.47! pic.twitter.com/CrW303RTaT
Ali (@ali_charts) January 11, 2025
Additionally, Martinez highlighted a growing number of short positions opened when XRP peaked at $2.6. Recall that Ripples cross-border token was among the few with notable gains on Saturday evening while the rest of the market stood silently.
Many traders might have anticipated a short-term correction due to XRPs divergence from the pack, which indeed occurred to the current levels. The question now remains whether the cryptocurrency will remain above the aforementioned support or that was just the start of a broader correction.
A lot of $XRP shorts were opened at $2.60, creating a substantial liquidation zone that market makers may try to grab. pic.twitter.com/cPIPwSjLEI
Ali (@ali_charts) January 12, 2025
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Text source: CryptoPotato
