XRP slipped 1.2% in the past 24 hours to $2.62, as traders flagged a potential short-term correction following a strong rebound earlier in the week. Despite the pullback, analysts see XRP consolidating within a larger accumulation structure that could precede a major breakout.
TD Sequential Flashes a Sell Signal
Analyst Ali Martinez noted on X that the TD Sequential indicator, which has accurately spotted XRP trend reversals over the past three months, has now flashed a sell signal on the daily chart.
Historically, the indicator has marked several local tops for XRP in recent months, including the previous peaks at $3.10 and $2.85. The latest reading suggests short-term downside pressure could emerge as the market digests gains from XRP’s recovery off October lows near $2.19.
CoinMarketCap data shows XRP’s market capitalization at $157.7 billion, with 24-hour trading volume climbing 6.6% to $5.17 billion, signaling heightened activity around current levels.
Wyckoff and Elliott Wave Patterns Signal Accumulation
Technical analyst Dark Defender presented a different outlook, highlighting that XRP is currently mirroring a Wyckoff accumulation pattern combined with elements of Elliott Wave structure.
In his chart, the recent price rejection near $2.70 aligns with a potential “Sign of Weakness (SOW)” before an upward reversal. The setup suggests XRP may be completing its consolidation phase, a structure that historically precedes explosive rallies once the “Spring” or final low forms.
“XRP is getting ready,” Dark Defender said, emphasizing that the next few sessions could define whether the token confirms a bullish continuation or faces a deeper retest toward $2.40.
Macro Correlation and Sentiment Context
The short-term weakness comes as broader crypto sentiment remains mixed ahead of the Federal Reserve’s rate decision, while Bitcoin and Ethereum both hold near local highs. XRP’s correlation to risk assets suggests volatility could increase if macro conditions trigger a shift in market liquidity.
Still, XRP’s fundamentals remain robust. With 485,000 holders and 60 billion tokens in circulation, investor participation continues to rise. Analysts argue that once XRP secures a confirmed breakout above $2.70–$2.75, it could accelerate toward the $3.10–$3.40 resistance zone.
What to Watch Next
- Immediate support: $2.50 and $2.40
- Resistance levels: $2.70 and $3.00
- Momentum trigger: Daily close above $2.70 confirming bullish continuation
While short-term indicators like TD Sequential point to cooling momentum, longer-term technicals, especially the Wyckoff accumulation model, suggest XRP could be building the foundation for its next macro leg higher.
As Dark Defender summarized: “It’s not the time to look away, this is the prelude to vertical liftoff.”