As the majority of the cryptocurrency market transforms into a sea of red, the price of XRP has not been spared, and the token’s price has decreased by over 6% in the past day.
Given the drop, crypto trading expert Ali Martinez highlighted in his technical analysis (TA) on October 11 that XRP could be displaying a ‘sell signal’ based on the TD Sequential. As a result, the token could correct below $0.40.
Martinez said:
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“The TD Sequential presents a sell signal on XRP 3-day chart, anticipating a correction to $0.42 or even $0.39.”
Specifically, the TD Sequential instrument is meant to pinpoint the precise moment of trend exhaustion and price reversal. It is a counter-trend tool that seeks to overcome the issue of various TA indicators that perform well in trending markets but badly in range markets.
Notably, Finbold had previously reported a breach of the $0.384 support level would show intrinsic buyer weakness and tilt the odds in favor of bears. Such a move might cause the XRP price to revisit the $0.36 support level.
XRP price analysis
Currently, XRP is trading at $0.4819, down 6.69% in the last 24 hours, according to data retrieved by Finbold from CoinMarketCap. In the last week, XRP is still up 2.47%, with a market capitalization of $21.1 billion.
Interestingly, the token had rallied almost 60% in the last month before the latest pullback as the token’s parent company Ripple continues to be embroiled in a legal tussle with the Securities Exchange Commission (SEC).
Regardless of the decision reached in the lawsuit with the SEC, it is likely that XRP will benefit from Ripple’s continuing network adoption to facilitate international payments. Already, XRP is being used by financial institutions to power transactions at a rate of 2%.
At the same time, Ripple Labs has been working hard to broaden the scope of its services, which is one of the reasons the firm is now ranked among the top 250 Fintech companies.
Given the fact that the future is still fraught with unpredictability, XRP is expected to trade at a median price of $0.4166 by October 31, 2022, according to a projection made by the cryptocurrency community on CoinMarketCap.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
