XRP suffered significant losses early this week on Monday after it saw a price decrease of 6.7% following Donald Trump’s swearing-in. While the asset displayed massive stability throughout this month, some market indicators point out a bearish momentum, which could render the altcoin lose its gains.
XRP to settle at $2.95
Today, crypto trader Ali Martinez shared an aggressive projection of the XRP market. He presented a TD Sequential indicator showing a sell signal in Ripple’s weekly chart, signifying a potential major pullback for XRP price.
Traders normally use the TD Sequential indicator to spot potential critical movements in price movements. The technical chart typically indicates when an asset’s price is overstretched in a specific direction and likely to experience a reversal.
According to Martinez’s projection, if the sell signal holds, XRP could witness a substantial correction dropping to a low of $3.11 soon. However, if the asset experiences greater selling pressure, it could see a further decline to $2.95, reflecting a potential 8.67% decrease from XRP’s current price.
XRP price rose almost 50% this month, even reaching $3.39 on January 18, its highest trek in almost seven years ago. Despite its recent tremendous uptrend, the token may experience a slump. Martinez’s technical indicator shows a possible downswing consolidation of up to 8.67%.
According to technical analysis, XRP’s current uptrend strength is weakening driven by traders cashing their profits. The fall is also fueled by declining buying pressure, which could add selling pressure toward the $2.95 downswing target in the next few days or weeks.
XRP price analysis
Bitcoin and other cryptocurrencies slowed down their strengths on Tuesday. This decline came after Trump announced several executive orders following his swearing-in, though did not mention cryptocurrencies.
XRP value dropped 6.7% on Monday after Trump was installed as the US president. Despite the decline, it has been up 21.6% in the last seven days and up 42% in the past month.
The decline came after President Trump announced the appointment of Mark Uyeda as the acting SEC chairman. Uyeda, who is recognized for his crypto-friendly approach, took over from Gary Gensler who left office on Monday.
Crypto market experts believe that Uyeda would lead the SEC to withdraw the appeal in the Ripple case, a development that could see XRP gain further growth.
XRP’s long-term prospects remain strong, backed by the potential rollout of spot XRP ETFs in the US. Market analysts predict that XRP ETFs could draw in massive amounts of investors’ funds if given the green light by the SEC.
XRP investment products are another catalyst for Ripple’s growth. The latest CoinShare data (released yesterday) showed that XRP investment products registered net inflows of $484 million since mid-November last year without US investors’ participation.
