XRP is showing signs of recovery following a recent price dip, with bullish indicators suggesting a potential rally to $11. The TD Sequential indicator has flashed a buy signal, prompting optimism for a significant breakout. Let’s dive into the technical analysis and key price levels to watch.
Recent Performance
XRP’s price dropped by 7% over the weekend, retreating from $2.5090 to lows near $2.3273. Despite this correction, analysts believe the asset is poised for a rebound, supported by favorable technical signals and market conditions.
Currently, XRP is trading at $2.41, consolidating after a blistering rally to seven-year highs of $2.9 in December 2024.
TD Sequential Buy Signal
Prominent crypto analyst Ali Martinez identified a TD Sequential buy signal on XRP’s 4-hour chart.
What Is the TD Sequential?
The TD Sequential indicator helps traders identify potential price reversals by analyzing the closes of previous candles. A buy signal indicates the likelihood of an upward price movement, especially when aligned with other bullish indicators.
This signal supports the idea that XRP may be building momentum for a rebound, potentially setting the stage for a breakout.
Bullish Pennant Formation
On a larger time frame, Martinez highlighted a bullish pennant pattern on XRP’s 12-hour chart. This continuation pattern suggests that XRP is consolidating before resuming its upward trajectory.
- Resistance: The key resistance level to watch is $2.73.
- Fibonacci Target: Breaking above $2.73 could propel XRP to $11, aligning with the 1.786 Fibonacci level calculated from XRP’s November 2024 bottom.
Key Scenarios
| Scenario | Price Levels ($) | Outcome |
|---|---|---|
| Bullish Breakout | Above 2.73 | Rally to $11, surpassing all-time highs. |
| Correction | Below 2.73 | Potential drop to $2.05 support. |
Potential Rally to $11
If XRP successfully breaks the $2.73 resistance, it could target $11, a price far exceeding its all-time high of $3.40. The bullish pennant pattern, combined with the TD Sequential buy signal, reinforces this outlook.
However, failure to break $2.73 could lead to a correction toward $2.05, presenting a crucial level of support.
XRP’s technical indicators point to a potential rebound, with the TD Sequential buy signal and bullish pennant formation suggesting upward momentum.
While resistance at $2.73 remains a key hurdle, a successful breakout could lead XRP to $11, marking a historic rally. Traders should monitor these levels closely, as failure to break resistance could result in a short-term correction.
