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- XRP’s gravestone doji sparks fears of another 46% crash.
- Traders are on alert as XRP tests key resistance levels.
- Key technical signals suggest XRP may be due for a downturn.
XRP has once again captured the spotlight in the crypto world after a key technical signal emerged on its weekly chart, suggesting a potential downturn. Crypto analyst Ali Martinez noted that XRP has formed a gravestone doji, which has been followed by significant drops in price in the past. This candlestick structure was last observed when XRP suffered a devastating 46% drop, raising the question for traders: Will history repeat itself?
The last gravestone doji, as Martinez puts it, was when the XRP reached a high of $2.05, after which it crashed down to approximately $1.15, at a highly steep 46 per cent drop. This specific trend is present when the price moves on a considerable rise throughout the week but closes the week close to the initial price, leaving behind a long upper wick. Although a single candlestick may not be a clear indicator, it is definitely making traders nervous, and they are watching price movement keenly to confirm.
The reappearance of the gravestone doji has created an impression of the possibility of XRP following the same path to decline. The traders are particularly on the lookout, considering the track record in the past, where the last significant rejection was just below the $2.00-$2.10 resistance area, which led to a steep decline. Unless XRP manages to break through the same resistance level once more, the trend may initiate another selling spurt, which will push the prices down again.
Key Technical Indicators Point to Range-Bound Movement
The daily chart also shows the technical indicators that suggest a possible range-bound market, which may curtail any short-term profit of XRP. The asset is at the moment between the bottom and middle Bollinger Bands, which means that the price might keep oscillating inside a specific range. The Relative Strength Index (RSI) is at 44.11, which indicates that XRP is not overbought or oversold yet, and there is a possibility of it going up or down.
Currently, the price of XRP stands at about $1.506, and it is up by 5.48 per cent in the past 24 hours. Nonetheless, the upwards movement is still limited by resistance at $1.83. Provided that XRP will be able to keep above the middle of the Bollinger Band at the price of $1.71, it may indicate an additional rise in potential. The traders are particularly wary of the area around the $2.00-$2.10 area of resistance, where the gravestone doji in the past had indicated a significant reversal in the price movement.
Will History Repeat Itself?
The volume and the price behaviour will be under consideration by the traders, as they are keen to know whether the current direction of XRP will continue the same trend it has followed. In the event the gravestone doji pattern is actual, a re-occurrence of the past 46% crash may be in sight, and traders will be busy scampering to save their positions. Time will tell whether history will indeed repeat itself or XRP will truly escape its historical patterns and proceed on its upward trend.
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