XRP formed a textbook reversal sign after the 30% skyrocket seeing an extremely strong rally over the past few days outperforming the leading cryptocurrency and even Ethereum as we are reading more in the upcoming Ripple XRP news.
Since July 22nd, the asset gained more than 50% reaching highs that were not seen since the February price shift. Some analysts see the price action as a precursor to the macro bull run for the asset. While this could be true, the leading altcoin printed some signs that it will reverse for a few days and then it could head higher. XRP was in an unstoppable rally in the past two weeks. During the weekend’s flash crash where Ethereum crumpled by 26% in the span of five minutes and XRP remained unfazed as it bounced back to a new multi-month high just a few hours after the crash but XRP formed a textbook selling signal.
XRP formed a sell candle on the daily chart as per the Tom Demark Sequential and the indicator printed 9 and 13 candles at the infliction points of the asset. The sell 9 candle formed on the charts of the altcoin which could predict a multi-day correction. There are other signals that the analyst is predicting a multi-year correction. There are other signals that the analyst is predicting a retracement or about a period of consolidation as XRP approached critical resistance levels.
The crypto research firm Blockfyre published a new chart and wrote that XRP is unlikely to break above the macro resistance at $0.33 and go further to consolidate below the level then move higher:
“$XRP up 32% since the breakout of this downtrend and initial post but finds it self hurtling at light speed towards heavy resistance which should stall it for some time before continuation. Bulls looking for weekly close above .30-33.”
The recent price rally performance came shortly after Ripple Labs revealed in the Q2 market report that it was purchasing XRP on the secondary market. This came after the company faced criticism that argued Ripple was suppressing the asset’s price:
“A healthy, orderly XRP market is required to minimize cost and risk for customers, and Ripple plays a responsible role in the liquidity process. As more financial institutions leverage RippleNet’s ODL service, more liquidity is added into the XRP market. That said, Ripple has been a buyer in the secondary market and may continue to undertake purchases in the future at market prices.”
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