Digital assets, which often react to macroeconomic cues and investor sentiment, have shown notable signs of recovery, none more so than XRP.
The uncertainty surrounding tariffs, diplomatic friction, and potential retaliatory measures sent shockwaves through both traditional and digital markets, with investors retreating from riskier assets like cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), and more.
However, as the dust began to settle, a shift in the narrative occurred. Recent reports suggest that the U.S. and China are preparing to return to the negotiation table to address lingering tariff disputes. This development has contributed to a more optimistic global market sentiment. For crypto investors, it’s been a welcomed change.
Roughly four weeks ago, XRP had plunged to around $1.60 amid the wider market correction. Today, it trades above $2.10, a strong rebound that mirrors the broader market’s relief rally. This recovery, however, hasn’t come without caution flags.
On the 3-day chart, the TD Sequential indicator, which is a popular tool among technical analysts for identifying potential trend reversals, has flashed a sell signal. According to seasoned crypto analyst Ali Martinez, this suggests that XRP may be approaching exhaustion in its current upward trend, possibly foreshadowing a pullback.
Source: X (@ali_charts)
The TD Sequential works by tracking a series of price candles and identifying moments when an asset becomes overbought or oversold. When a sell signal is triggered, it typically indicates that the recent momentum may be running out of steam, and traders might start locking in profits.
While XRP has generally held above the $2 mark over the past month, it did experience a brief dip below that level during a particularly volatile trading session.
Despite that momentary breach, the asset quickly regained its footing, maintaining its position above what many analysts now see as a critical psychological and technical support level.
Source: X (@ali_charts)
Ali Martinez has underscored the importance of the $2 mark multiple times, warning that it needs to remain a strong support zone. If XRP were to fall below it again and fail to reclaim it quickly, $2 could turn from a support level into resistance, which would be a potentially bearish shift in sentiment.
In another post shared earlier today, Martinez, who commands a following of over 135,000 on X (formerly Twitter), outlined XRP’s current trading range.
“Any decisive move outside of this range could signal the next major trend. A close below $2 could indicate growing bearish momentum and a likely correction, while a breakout above $2.26 could spark renewed bullish enthusiasm and possibly propel XRP toward the next resistance level.”
He pegged $2.26 as the upper resistance level, creating a tight corridor between $2 and $2.26 where XRP has been consolidating. The asset is currently trading around $2.14, roughly halfway between these two key levels, with no clear directional breakout yet in sight.
Market participants will be closely watching both the technical indicators and the evolving geopolitical narrative in the days ahead.
While fundamentals like regulation and adoption remain long-term drivers of crypto value, the current market cycle appears tightly interwoven with global economic developments and investor sentiment around them, particularly surrounding President Trump and his tariffs.
Source: CoinGecko
In the short term, XRP’s fate may rest heavily on whether it can stay above that $2 floor and mount a strong challenge to the $2.26 ceiling. Traders and investors alike would be wise to stay alert, as the next move could set the tone for XRP’s trajectory in the coming weeks.
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