XRP Buy Signal: Key Derivatives Data Shows Risks

What to Know:

• XRP shows a potential buy signal based on the TD Sequential indicator, contingent on holding above $1.90.
• The analysis arrives amid positive developments around Ripple and substantial inflows into XRP ETFs, contrasting with recent price stagnation.
• A sustained price above $1.90 could lead to a rally toward $2.50, impacting liquidity and market sentiment around XRP.

XRP is at a critical juncture, with technical indicators suggesting a potential bullish reversal if key support levels hold. Despite positive news flow, including the launch of XRP ETFs and Ripple’s ongoing partnerships, the token has struggled to maintain upward momentum. A prominent analyst points to a specific price level that could trigger a significant rally.

Technical Buy Signal Emerges

According to crypto analyst Ali Martinez, the TD Sequential indicator has flashed a buy signal for XRP. This signal is predicated on XRP maintaining its position above $1.90, a level previously identified as crucial for the asset’s trajectory. A successful hold above this threshold could pave the way for a substantial price increase.

Potential Price Target: $2.50

Martinez’s analysis suggests that if XRP can sustain above $1.90, a target of $2.50 becomes a realistic possibility. Reaching this level would require overcoming several resistance points, specifically sell walls at $2.10, $2.15, and $2.25. These levels will likely present challenges as the price attempts to move higher.

ETF Inflows vs. Price Action

The potential rally comes despite XRP’s recent struggle to reflect positive developments. Since the launch of the first XRP ETF, the token has experienced a decline, even with nearly $1 billion in net inflows into the various XRP ETFs. This disconnect between ETF activity and price action highlights the complexities of market dynamics and the various factors influencing XRP’s value.

Critical Support Level

Martinez has also cautioned that failure to hold the $2.00 support level could lead to a significant price drop, potentially down to $1.20. This highlights the importance of the current levels and the need for XRP to maintain its ground to avoid a potentially steep correction. The $2.00 mark represents a key battleground between bulls and bears.

Short-Term Bearish Signals

In the short term, other analysts have noted slightly bearish signals, emphasizing the need for XRP to overcome the $2.10 resistance to establish a more bullish outlook. Failure to break through this resistance could result in another price drop, underscoring the immediate challenges facing XRP in its attempt to initiate a sustained upward trend.

Conclusion

XRP’s near-term price action hinges on its ability to maintain key support levels and overcome immediate resistance. The TD Sequential buy signal offers a potential catalyst for a rally, but the asset must first establish a firm footing above $1.90. The interplay between technical indicators, ETF inflows, and broader market sentiment will ultimately determine XRP’s trajectory in the coming weeks.

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Source: Original article