Key Insights
- •XRP price is trading in negative territory but maintaining support at $2.65.
- •An analyst has issued a warning of a likely correction for XRP, citing historical technical trends.
- •XRP whales have offloaded approximately 140 million coins in recent days.
XRP price has remained near the flatline today as investors adopt a cautious stance ahead of the anticipated FOMC interest-rate cut decision. However, commentary from a prominent expert has heightened concerns among traders, suggesting a potential pullback in the Ripple coin's value.
An analyst has identified a technical signal for XRP that has accurately predicted past trends. The reappearance of this signal now indicates a potential decline in the cryptocurrency's value in the near future.
Furthermore, whales are actively booking profits amidst the highly volatile broader crypto market. Considering these factors, it appears that the XRP price could experience a significant setback if the selling pressure from Ripple whales continues.
XRP Price Near Flatline: Can it Recover?
At the time of writing, the XRP price was down nearly 0.5%, but it managed to hold its brief support level at $2.65. The trading volume over the past 24 hours increased by more than 10% to $5.3 billion, indicating rising trading activity in the market.
Despite holding the $2.65 mark, analysts express caution regarding the coin's potential future movements. Experts have previously suggested that the Ripple coin needs to surpass the $2.75 mark to sustain its bullish trajectory.
Derivatives data suggests a muted market sentiment. According to CoinGlass data, the XRP Futures Open Interest (OI) saw a marginal decline to $4.60 billion, with Binance recording the most significant decrease of 2%.
Conversely, some market participants remain optimistic about a potential recovery in XRP's value. The US Federal Reserve is expected to announce a 25 basis points rate cut at today's meeting, which could enhance the appeal of risk-on assets like cryptocurrencies.
On the other hand, a hawkish speech from Fed Chair Jerome Powell could negatively impact broader market sentiment. Amidst this uncertainty, a top expert has raised concerns, highlighting a potential upcoming pullback in XRP price.
Analyst Warns of Ripple Coin Correction
As the XRP price continues to struggle to break the key resistance level at $2.75, analysts are delivering further unfavorable news for traders. In a recent post on X, analyst Ali Martinez highlighted the TD Sequential signal for the Ripple coin.
Martinez noted that this signal has been "remarkably accurate at spotting XRP trend reversals over the past three months." He further indicated that the signal is now flashing a "sell signal" for the asset, suggesting a potential downturn for XRP.
He recalled that on July 22, the same signal preceded a 24% crash in the asset's price. The following month, the signal was associated with a 17% decline in value, and in September, it contributed to a dip of approximately 15%.
Consequently, the cryptocurrency might face another correction in the near future, unless a positive catalyst reverses the current market sentiment.
Meanwhile, another significant concern within the Ripple market is the profit-booking activity by whales, which could be hindering the anticipated rally. In a separate post, Martinez stated that the XRP price had recovered from a major crash earlier this month, which had led to a dip to $1.5.
However, XRP has gained approximately 13% over the past few days, enabling large investors to book profits. Martinez noted that XRP whales have offloaded 140 million tokens recently, while the crypto was attempting a comeback.