2 metrics point to Ripple (XRP) price in trouble after recent surge to $2.60

TL:DR;

XRP price had an unexpected run on Saturday night, rising to a multi-week high of $2.6 before correcting slightly. However, some metrics on the chain suggest that the asset could be in trouble in the coming days, especially if it fails to close above $2.47. XRPUSD. Source: TradingView

As reported on Saturday evening, XRP’s rally pushed the asset from $2.33 to $2.5 and later to $2.6, representing an 11.5% increase in less than 24 hours. Although the asset has lost some steam since then and currently sits at $2.51, it is still up more than 6% on the day.

This came shortly after reports emerged that whales had amassed more than a billion XRP tokens in a span of just 48 hours during the most recent mid-workweek correction.

However, this is where popular crypto analyst Ali Martinez sounded the alarm about a potential downside for the price of XRP.

Earlier, he noted that the TD Sequential, a technical indicator used to show market exhaustion in either direction, had shown a sell signal on the 4-hour chart. However, this bearish formation will be invalidated if the asset closes above this line, which it still holds.

The TD Sequential presents a sell signal at $XRP 4-hour chart, anticipating a short correction. The bearish formation will be invalidated if #XRP close above $2.47! pic.twitter.com/CrW303RTaT

— Ali (@ali_charts) January 11, 2025

Additionally, Martinez noted a growing number of open short positions as XRP peaked at $2.6. Remember that Ripple’s cross-border token was among the few with notable gains on Saturday evening, while the rest of the market remained silent.

Many traders might have anticipated a short-term correction due to XRP’s divergence from the pack, which indeed occurred at current levels. The question now remains whether the cryptocurrency will hold above the aforementioned support or if this was just the start of a broader correction.

many $XRP The shorts opened at $2.60, creating a substantial liquidation zone that market makers can try to grab. pic.twitter.com/cPIPwSjLEI

— Ali (@ali_charts) January 12, 2025

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