XRP now shows buy signal on TD sequential indicator, with analysts anticipating a potential breakout to $11.
XRP may be on the verge of a price rebound following a sharp drop over the weekend.
After reaching highs of $2.5090, the cryptocurrency fell approximately 7%, hitting lows around $2.3273.
Despite this recent decline, the overall outlook for XRP remains positive, particularly as regulatory clarity looms on the horizon under the potential Donald Trump administration.
Recent Trends and Analyst Insights
In recent months, XRP has gained considerable attention in the cryptocurrency market, experiencing a vigorous rally that brought it to seven-year highs.
Although this momentum has slowed over the past few weeks, analysts continue to express optimism about its future performance.
One notable analyst, Ali Martinez, recently highlighted a possible buying opportunity for XRP.
On January 5, he pointed out a TD Sequential buy signal on the asset’s four-hour candle chart, suggesting that the price may be set for a rebound.
The TD Sequential is a technical analysis tool that helps traders identify potential price reversals by analyzing the closing prices of previous candles.
Key Technical Indicators
The recent buy signal comes after a notable decline, indicating that XRP might be building up the momentum necessary for a resurgence.
Martinez believes that this could lead to a breakout, particularly if XRP can sustain its upward trajectory.
Bullish Pennant Formation
In another post on January 4, Martinez shared his analysis of XRP’s 12-hour candle price chart, revealing a bullish pennant formation.
This pattern has emerged since XRP reached its seven-year high of $2.90 in early December 2024.
Currently, the analyst has identified a critical resistance level at $2.73.
If XRP can break through this point, it could trigger a significant rally, potentially pushing the price up to $11.
This target aligns with the 1.786 Fibonacci level established from the asset’s November 2024 low.
Notably, this projection far exceeds its all-time high of $3.40.
Potential Risks Ahead
Despite these optimistic indicators, Martinez cautions that failure to breach the $2.73 resistance level could result in a correction, bringing the price down to $2.05.
As of now, XRP is trading at approximately $2.40, leaving traders and investors eager to see how the market unfolds in the coming days.
While XRP’s recent price action may have raised concerns, the technical indicators suggest a potential rebound, and the market is watching closely for signs of a breakout that could lead to significant gains.
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Also Read: XRP’S Drop Now Sparks Optimism
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