Crypto Trader's XRP Alert: Potential Pullback for Prominent Altcoin – Examining the Downside Targe

Crypto Analyst and Trader Ali Martinez Forecasts Potential XRP Price Decline Amid Resistance Rejection.

Martinez informs his 36,200 social media followers on X platform that XRP has been unable to achieve a close above the midpoint of its ascending parallel channel as observed on the three-day chart. According to the crypto trader, this rejection implies a potential correction for XRP towards the diagonal support of the aforementioned pattern. Martinez states, 'XRP is currently within the confines of an ascending parallel channel. Following its recent rejection at the channel's midpoint, XRP may experience a retracement towards the lower boundary, approximately at the $0.55 level.

Source: Ali Martinez/X

Although ascending parallel channels typically indicate bullish long-term patterns, the price action within the channel can vary, shifting between bullish and bearish, with the upper boundary acting as resistance and the lower boundary as support.

As of the current writing, XRP is trading at $0.611, still below the channel's mid-line.

Turning our attention to Bitcoin (BTC), Martinez points out that the flagship cryptocurrency is nearing a zone where it could encounter increased downward pressure, as per data from the blockchain analytics platform IntoTheBlock.

According to the trader, approximately 1.87 million addresses have amassed 730,000 BTC in the price range of $41,200 to $42,400. If the price falls below these levels, it could prompt these holders to cut their losses.

Martinez advises, 'In the event of heightened selling pressure, keep an eye out for a potential decline toward the subsequent demand zone, situated between $37,500 and $38,700. Within this range, 1.28 million addresses are currently holding 553,000 BTC.

Source: Ali Martinez/X

 

At the time of writing, Bitcoin is trading at $43,051.

Martinez additionally highlights a bearish on-chain signal for Bitcoin, as data from crypto analytics firm Glassnode indicates a notable decline in Bitcoin network growth over the past month. This development raises concerns about the sustainability of Bitcoin's recent ascent to $44,000.

To ensure a robust continuation of the bullish trend, it becomes essential to observe an increase in the number of new Bitcoin addresses. Such an uptick would furnish the necessary support for maintaining sustained bullish momentum.

Source: Ali Martinez/X


Dec 19, 2023

64 0

Comments