XRP is posting a short-term rally after consolidating around the $0.35 zone for days at a time when the cryptocurrency community awaits the outcome of the Ripple and Securities Exchange Commission (SEC) court case.
XRP chart showing ‘sell signal’!
Amid the gains, crypto trading expert Ali Martinez warned that XRP could show a ‘sell signal’ on its chart based on the TD (Tom Demark) Sequential. In his technical analysis dated December 27, Martinez noted that investors should also expect a bearish formation for XRP, which is indicative of a possible correction.
“TD Sequential offers a sell signal on the XRP four-hour chart, while it is bearish against the RSI. The bear formation was expecting a one to four candlestick correction for XRP,” he said.
XRP candlestick chart. Source: TradingView
Specifically, the TD Sequential metric highlights the precise moment of trend exhaustion and price reversal of a selected asset.
Indeed, the latest XRP price action could be considered vital for the token as it aims to recover towards $0.50. The overall crypto market bearish trend has invalidated the previous momentum towards the position.
XRP price analysis
At press time, XRP was trading at $0.37, up almost 4% on the daily chart, while on a weekly basis the token rallied about 8%. The recent XRP buying pressure has also resulted in its market cap reaching $18.54 billion.
XRP seven-day price chart. Source: Finbold
Indeed, while XRP is making small gains, the token’s fundamentals are primarily tied to the ongoing litigation between the SEC and Ripple. While both parties have submitted their final statements, the case heats up after the regulatory authority makes a request to seal certain documents.
Under the request, the SEC requests the court to seal documents on the names and identifying information of experts and XRP investor statements, personal and financial information, and internal SEC documents that reflect discussion and deliberation by SEC officials.
Aside from the situation, XRP remains vulnerable to the impact of the overall crypto price action, which is bearish. Meanwhile, the machine learning algorithm at PricePredictions predicts that XRP will likely trade at $0.33 on January 1, 2023.
Disclaimer: The content on this site should not be considered investment advice. Investment is speculative. When investing, your capital is at risk.