2 Metrics Indicate Ripple (XRP) Price Faces Trouble After Recent Surge to $2.60

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TL:DR;

  • XRP’s 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.

Over the weekend, I witnessed a significant uptick in XRP’s value. Starting from around $2.33, it surged to $2.5 and eventually reached $2.6, marking an impressive 11.5% increase in less than 24 hours. Although it has cooled off a bit since then, currently trading at $2.51, it’s still showing an over 6% gain for the day.

In the midst of last week’s trading correction, it was quickly discovered that over a billion XRP tokens were accumulated by whales in just two days.

Yet, it’s here that well-known crypto analyst Ali Martinez raised concerns about a possible disadvantage affecting XRP’s price.

Initially, he noted that the TD Sequential, a technical tool used to highlight potential market exhaustion in either direction, had shown a sell signal on the 4-hour chart. However, this bearish pattern can be disregarded if the asset manages to close above the specified line, which it has yet to do.

On the XRP 4-hour chart, the TD Sequential has issued a sell warning, suggesting a short-term pullback may occur. However, this bearish signal can be negated if XRP manages to close over the price point of $2.47.

— Ali (@ali_charts) January 11, 2025

Moreover, Martinez pointed out an increasing trend in short positions taken as XRP reached a high of $2.6. It’s worth noting that Ripple‘s cross-border token was one of the rare ones that experienced significant growth during Saturday night, while most other cryptocurrencies remained relatively stable.

Some investors may have expected a brief drop in the price of XRP because it had been deviating from other cryptocurrencies, and this drop to the current levels has indeed taken place. The issue now is whether XRP will continue to hold above its previously mentioned support level or if this was just the beginning of a larger correction.

Many traders have taken short positions on XRP when its price was around $2.60, establishing a significant area where potential sell-offs could take place, which market makers might aim to exploit.

— Ali (@ali_charts) January 12, 2025

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2025-01-12 12:16