Analysts believe that the XRP price rally has reached exhaustion.
In a tweet on Monday, crypto analyst Ali Martinez warned that the XRP price is set to plummet to the $0.42 or $0.39 price point.
“The TD Sequential presents a sell signal on XRP 3-day chart, anticipating a correction to $0.42 or even $0.39,” the analyst wrote.
— Ali (@ali_charts) October 10, 2022
Meanwhile, another popular crypto trader, Profit Blue, shared a similar analysis today. The analyst revealed that the token was about to break an important 4-hour trend line and could be headed for the neckline of a newly formed double-top pattern. It bears mentioning that this neckline is around the $0.42 price range.
The labeled trendline is very important, any break below it will likely trigger heavy selling pressure and that's going to send price to the neckline of this pattern.
4 HR chart.$XRP pic.twitter.com/Zh1lZPM06c
— PROFIT BLUE (@profit8lue) October 11, 2022
It is worth noting that the XRP token enjoyed a massive rally over the weekend, decoupling from the rest of the crypto market and boasting 70% gains in 30 days. Notably, the asset was trading above the $0.52 price point.
The token has been awash with positive sentiment in recent weeks. It bears mentioning that on Thursday, before the price began to surge, the network recorded the highest 24-hour growth since July 2, with nearly 3k new addresses created.
XRP faithful continue to hope for a Ripple victory in the legal battle with the US Securities and Exchange Commission that could see trading of the token back on US crypto exchanges. Additionally, holders are excited as Flare Network is gearing up to distribute rewards to XRP holders.
At press time, XRP is trading at the $0.4919 price point, 6.86% lower in the last 24 hours but still up 7.79% in the last seven days.