XRP Bullish Outlook: Key Support and Potential Local Top Identified by TD Sequential

Ripple’s XRP cryptocurrency has recently bounced back from a multi-week low, reaching a pivotal support level. The TD Sequential indicator is signaling a potential local top. Meanwhile, the ongoing inflows into spot XRP exchange-traded funds (ETFs) reflect a steady interest despite fluctuating prices.

Key Takeaways

XRP has rebounded from recent lows and is trading at approximately $1.93.
The TD Sequential indicator points to a possible local top for XRP.
Trading volume is healthy at around $5.7 billion.
Active addresses for XRP have decreased significantly over the past week.
Spot XRP ETFs are experiencing positive inflows.

XRP holds key support as TD Sequential flags local top

XRP Price and Market Analysis

Ripple’s XRP token has made a recovery from its recent multi-week low, surpassing a crucial price point that traders consider essential for predicting future movements. Currently, XRP is trading at about $1.93, which represents a decline of around 8–9% from its highs last week, yet it remains firmly within a defined range. The trading volume over the past 24 hours is around $5.7 billion, indicating strong liquidity, even as XRP's price action stays largely restricted between notable support and resistance levels.

The TD Sequential, a popular technical analysis tool used to identify potential exhaustion points in asset price trends, suggests a possible local top for XRP following its rebound on Friday. Market analyst Ali Martinez shared data indicating that this indicator has been effective in predicting XRP price trends in the past. After a drop in late November, the TD Sequential flashed a buy signal, which was followed by a notable increase in XRP's price—historical patterns suggest that similar signals often precede significant recoveries.

XRP bulls eye key support as TD Sequential flashes possible local top - 1

Analysts have also pointed out that the TD Sequential has been reliable in generating sell signals. Analyst CryptoWZRD observed that XRP closed with ambiguity and is reflecting Bitcoin’s overall market sentiment. While Bitcoin has seen slight gains recently, XRP's performance has remained relatively stable.

Importantly, XRP continues to hold above a critical support level. However, if this support is breached, it could lead to a significant decline, as highlighted by technical analysis.

Additionally, the number of active $XRP addresses has seen a drop from 46,000 to 38,500 over the past week, indicating a reduced level of activity among users.

According to market data, spot Ripple exchange-traded funds have experienced consistent positive inflows since the debut of the first fund, suggesting continued investor interest in XRP.