XRP Signals Recovery After Recent Dip

XRP recently faced significant downward pressure, but there are encouraging indicators pointing to a potential rebound. The digital asset, closely tied to Ripple, took a sharp hit after hitting strong resistance, but technical charts may suggest a turnaround is on the horizon.

After rising toward the $2.7 mark—a key multi-month resistance point—XRP encountered rejection earlier this week. Following two failed attempts to break through this level, the asset fell steeply to around $2.3, signaling a loss of over 11% within just three days. This swift decline had many XRP supporters, commonly referred to as the XRP army, concerned about further losses.

However, a popular crypto market analyst, Ali Martinez, shared a more optimistic outlook. According to his technical analysis using the TD Sequential indicator—a tool designed to detect potential trend reversals—the hourly chart for XRP is showing multiple buy signals. If validated, this could mark a shift in momentum for Ripple’s token, offering a much-needed lift after the recent dip.

While this development brings hope for a bounce, XRP’s price action is also being shaped by outside legal factors. Earlier this week, U.S. District Judge Torres denied a joint motion from the U.S. Securities and Exchange Commission (SEC) and Ripple for a proposed $50 million settlement, which had aimed to conclude the long-running legal case between the two parties. The rejection of this motion appeared to weigh heavily on market sentiment, triggering a sell-off that coincided with XRP’s struggle at the $2.7 resistance level.

Before this recent turn of events, Martinez had previously remarked that there were minimal resistance zones for XRP on its journey toward the $3 mark. He identified $2.38 as a critical support level—one that unfortunately gave way during the latest pullback. Falling below this threshold could have broader implications for Ripple’s short-term momentum unless buying pressure resurfaces soon.

Another aspect worth monitoring is XRP’s user growth, or lack thereof. While Bitcoin and Ethereum continue to see strong network activity with around 309,000 and 112,000 new daily wallets respectively, XRP lags significantly by comparison. Recent figures indicate that the network averages only about 3,500 new wallets per day. This stark contrast raises questions about XRP’s user adoption and may further challenge its positioning in the increasingly competitive crypto landscape.

Despite these challenges, the emergence of buy signals from technical analyses like the TD Sequential could provide a temporary cushion for XRP. Traders and long-term holders will likely keep a close eye on whether these indicators prove effective and if Ripple can regain momentum amid ongoing legal uncertainty and stagnant network growth.

Related: Expert Advice: Sell XRP If You’re Confused

While XRP faces headwinds both technically and fundamentally, these are not uncommon in the volatile world of cryptocurrency. The near term remains uncertain, but market participants are watching key support zones and on-chain activity to gauge the next move for this flagship asset.