- XRP shows gravestone doji, could face potential 46% decline.
- Traders monitor resistance at $1.83 as XRP’s volatility increases.
- RSI at 44.11 indicates XRP could continue price fluctuations soon.
A fresh technical signal has put XRP back in focus after a pattern linked to a sharp past decline resurfaced on the weekly chart. Crypto analyst Ali Martinez highlighted that the last time XRP printed a ‘gravestone doji’ on the weekly timeframe, it led to a 46% crash. This pattern occurs when the price rises significantly during the week but closes near its opening, leaving a long upper wick.
In the previous case, XRP peaked at $2.05, then quickly dropped to around $1.15, marking a 46% decline. The subsequent red weekly candles confirmed ongoing selling pressure. While one candlestick isn’t conclusive, traders are carefully watching for confirmation and broader market trends before taking action.
Weekly timeframes often carry greater significance for traders. Each candle captures seven days of activity and reflects broader capital flows. Consequently, reversal patterns on this scale can influence medium-term positioning. A gravestone doji near resistance frequently suggests distribution, where buyers struggle to maintain higher valuations.
However, traders continue to evaluate confirmation signals before drawing firm conclusions. A single candlestick does not guarantee repetition of past outcomes. Additionally, XRP’s trajectory often moves in tandem with broader crypto market sentiment. Bitcoin trends and macroeconomic developments regularly shape risk appetite across digital assets.
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Key Indicators on XRP’s Current Chart
Looking at the daily chart for XRP, there are additional key technical indicators worth noting. The Bollinger Bands show that XRP is currently trading between the lower and middle bands, indicating the possibility of further price action within the range. The Relative Strength Index (RSI) is at 44.11, suggesting the asset is neither overbought nor oversold, but has room for further movement.
Currently, XRP is trading at around $1.506, with a slight upward movement of +5.48% in the last 24 hours. If the price continues to hover above the middle Bollinger Band ($1.71), it could indicate potential bullish continuation. However, the price remains constrained by the upper Bollinger Band at $1.83, where strong resistance could limit upward momentum.
Source: Tradingview
Market participants will closely monitor these levels as price action develops. A break above the resistance at $1.83 could signal further strength, whereas any significant pullbacks toward the lower band could lead to bearish sentiment and further tests of support.
Resistance Levels and Market Reaction Take Center Stage
The historical rejection occurred near the $2.00 to $2.10 zone. That area now stands out as a notable resistance band. During the subsequent decline, support formed near $1.15. XRP currently trades above that previous floor, yet volatility remains present.
Market observers now monitor whether price action will mirror the earlier pattern. Significantly, traders assess volume behavior and follow up weekly closes to validate any bearish thesis. If momentum weakens near resistance again, sentiment could shift quickly. On the other hand, sustained strength above key levels would weaken comparisons to the earlier setup.
XRP has returned to the radar after Ali Martinez highlighted a weekly gravestone doji that previously preceded a 46% crash. The historical example underscores how strong rejection at resistance can trigger extended downside moves. While markets rarely follow identical paths, the resurfacing pattern has placed traders on alert as they evaluate the coming weeks.
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