XRP is seeing a short-term rally after days of consolidation around the $0.35 zone at a time when the cryptocurrency community awaits the outcome of Ripple and the Securities Exchange Commission (SEC) court case. Amid the gains, crypto trading expert Ali Martinez warned that XRP could show “a sell signal” on its TD Sequential (Tom Demark) based chart. In his December 27 technical analysis, Martinez noted that investors should also expect a bearish formation for XRP, an indicator of a possible correction in the four-hour chart of XRP; the TD Sequential is giving a sell signal as a bearish divergence is forming against the RSI. The bearish formation anticipated a correction of one to four candles for XRP,” he said.
The TD Sequential metric highlights the precise moment of trend exhaustion and price reversal of a selected asset. The recent XRP price action be crucial for the token as it aims to rally toward $0.50. The overall bearish sentiment in the crypto market invalidated the last push toward the position.
XRP price analysis
At press time, XRP is trading at $0.37 after rising nearly 4% daily, while the token is up nearly 8% weekly. Recent buying pressure on XRP has also caused its market cap to hit $18.54 billion.
With XRP posting marginal gains, the token’s fundamentals largely depend on the ongoing case between the SEC and Ripple. After both sides filed their final submissions, the case heated up after the regulator requested that certain documents be sealed. In the motion, the SEC wants the court to seal documents relating to the names and identifying information of XRP investor experts and depositors, personal and financial information, and internal SEC documents that reflect the discussion and advice of SEC officials.
In addition to If, XRP remains vulnerable to the impact of the general move in cryptocurrency prices, which have remained bearish. Meanwhile, PricePredictions’ machine learning algorithm predicts that XRP will likely trade at $0.33 on January 1, 2023.