Recent reports reveal that Ripple’s cross-border token, XRP, experienced a significant decline over the past few days. After being turned away at the multi-month high of approximately $2.7, the token’s value now hovers below $2.35. However, amidst this double-figure slump, a particular technical index has indicated a potential buy signal that may trigger a trend shift.
Key Takeaway: The TD Sequential, a tool used to identify market exhaustion in either direction across various timeframes, has flashed multiple buy signals on XRP’s hourly chart, suggesting a possible rebound.
Popular crypto analyst Ali Martinez shared a chart showcasing the TD Sequential’s signals. This comes in the wake of XRP’s failure to surpass the $2.7 resistance earlier this week, resulting in a drop to $2.3. This represents a more than 12% price decrease in just a few days.
The price drop coincides with Judge Torres’s decision to reject the joint motion filed by the US SEC and Ripple to settle their lawsuit with an official settlement of $50 million. In previous analyses, Martinez suggested that XRP had no significant resistance on its path to $3 and beyond but warned that a fall below the crucial support level of $2.38 could spell more trouble for the token. This scenario has played out over the last 24 hours.
An additional bearish signal could be the low rate of new wallet creation on the XRP network. According to Santiment, the daily average of new XRP wallets was around 3,500, significantly trailing behind leaders Bitcoin (309,000 per day) and Ethereum (112,000 per day).
