Crypto Trader Warns of Potential XRP Pullback
A cryptocurrency analyst and trader, Ali Martinez, is cautioning that XRP may experience a decline in price as it faces resistance at a crucial level. Martinez notes that XRP has failed to close above the mid-point of an ascending parallel channel on the three-day chart, suggesting a potential correction towards the pattern’s diagonal support.
Although ascending parallel channels are generally considered bullish patterns in the long term, the price action within the channel can vary from bearish to bullish. The upper boundary acts as resistance, while the lower boundary serves as support. Currently, XRP is trading below the channel’s mid-line at $0.611.
Potential Downward Pressure for Bitcoin
In addition to his analysis on XRP, Martinez also discusses Bitcoin (BTC). He points out that BTC is nearing a zone where it may face increased downward pressure based on data from IntoTheBlock. The analytics platform reveals that 1.87 million addresses accumulated 730,000 BTC between $41,200 and $42,400. If BTC falls below these levels, it could trigger these holders to cut their losses.
Bearish On-Chain Signal for Bitcoin
Martinez also highlights a bearish on-chain signal for Bitcoin. According to data from Glassnode, Bitcoin’s network growth has declined over the past month. This decrease raises doubts about the sustainability of BTC’s recent surge to $44,000. Martinez emphasizes that for the bullish momentum to continue, there needs to be an increase in the number of new BTC addresses.
Hot Take: Potential Price Pullback for XRP and Bitcoin
Cryptocurrency trader Ali Martinez suggests that XRP may experience a pullback as it fails to close above a key resistance level. The analyst also warns of potential downward pressure for Bitcoin based on address accumulation data. Additionally, Martinez points out a bearish on-chain signal for Bitcoin due to a decline in network growth. These factors indicate the possibility of price corrections for both XRP and Bitcoin in the near future.
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