Cryptocurrency analyst and trader Ali Martinez is predicting that XRP could see lower prices as it faces rejection from a key resistance level.
Martinez tells his 36,200 followers on the social media platform X that XRP has failed to close above the mid-point of an ascending parallel channel on the three-day chart.
According to the crypto trader, the rejection suggests that XRP may correct toward the diagonal support of the pattern.
“XRP is moving inside an ascending parallel channel! After facing rejection at the channel’s mid-line, XRP might see a pullback toward the lower boundary, around $0.55.”
While ascending parallel channels are typically bullish patterns over the long term, the price action inside the channel varies from bearish to bullish and vice versa with the upper boundary acting as resistance and the lower boundary as support.
XRP is trading at $0.611 at time of writing, still below the channel’s mid-line.
Turning to Bitcoin (BTC), Martinez says that the flagship crypto asset is close to moving to a zone where it might face even more downward pressure based on data from the blockchain analytics platform IntoTheBlock.
According to the trader, 1.87 million addresses accumulated 730,000 BTC between $41,200 and $42,400, and a move below those levels could trigger the holders to cut their losses.
“If selling pressure increases, watch for a possible decline to the next demand zone between $37,500 and $38,700. Here, 1.28 million addresses are holding 553,000 BTC.”
Bitcoin is trading at $43,051 at time of writing.
Martinez also says that Bitcoin is flashing a bearish on-chain signal as its network growth has fallen over the past month per data from crypto analytics firm Glassnode.
“There’s been a noticeable dip in Bitcoin network growth over the past month, casting doubt on the sustainability of BTC’s recent move to $44,000.
For a robust continuation of the bull rally, it’s crucial to see an uptick in the number of new BTC addresses. This would provide the needed support for sustained bullish momentum.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: DALLE3
