XRP has maintained its position above $2.60, but several red flags have emerged. The cryptocurrency has seen a notable rise during recent weeks, especially after bouncing back from the dip during the significant downturn on October 10. The token has reclaimed the fourth spot in market capitalization following double-digit weekly increases. However, renowned crypto analyst Ali Martinez cautions that a downtrend may be imminent.

Martinez’s insights stem from the TD Sequential tool, which aims to evaluate market weariness in either direction. In a recent video, accessible on his profile on X, he highlighted the previous accuracy of this indicator when issuing buy or sell signals specifically for XRP.

“The TD Sequential on the daily chart has been remarkably accurate in calling XRP’s trend reversals over the past three months, and it has just flashed another sell signal.”

“TD Sequential” den günlük grafikte XRP’nin trend tersine dönüşlerini çağırmadaki doğruluğu şaşırtıcıydı ve bu, bir başka satış sinyali vermiştir.

He shared instances where the tool indicated sell signals, indicating a 24% drop soon after a sell signal following XRP’s new all-time high of $3.65 on July 22. Additionally, a 17% plunge followed after a sell signal on August 17, and another 13% decline was recorded after a signal on August 23. Conversely, buy signals on September 23 and October 22 led to gains of 12% and 14%, respectively, propelling XRP past $2.60 for the first time in weeks.

Despite these patterns, past performance does not ensure future outcomes. Currently, the asset holds a robust price above $2.60, even as the wider market faced some dips. Increased volatility is anticipated as the US Fed prepares to announce its interest rate decisions later today.

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This analysis underscores the importance of monitoring XRP’s trajectory as market dynamics shift.