As XRP continues to defend the important $1 support level, bulls and bears are battling it out to tilt the odds in their favor. A series of technical and on-chain indicators point toward the key inflection point moving to $1.06, which can determine the cryptocurrency’s short and medium-term price outlook.
Analyst explains why $1.06 is important
In a detail X thread shared on Tuesday, seasoned crypto analyst Ali Martinez explained that XRP is preparing for a volatile move. To start, the daily chart shows the TD Sequential indicator flashing a buy signal. Historically, this pattern has preceded a 1-4 day candlestick relief rebound.
For the uninitiated, the TD Sequential is a technical analysis indicator that helps to identify when a market trend may be getting close to exhaustion, and is due for a reversal.
It does this by counting a series of consecutive price bars, with a buy signal suggesting selling momentum may be fading and a sell signal indicating bullish momentum could be weakening.
The network activity also supports the XRP rebound thesis. Notably, daily active XRP addresses have climbed by almost 50 percent over the last 2 weeks from 23,000 to almost 40,000 active users.
However, despite the rising active addresses, XRP whales are actively distributing. Large-scale XRP whales are selling tokens. This suggests the sudden increase in active addresses is very likely driven by whales moving funds to exchanges to liquidate.
Meanwhile, the unspent realized price distribution (URPD) shows that $1.06 is the key floor for XRP. If this level holds, then the daily buy signal gets validated – confirming a possible rebound to $1.27 and $1.35. Otherwise, a daily close below $1.06 may trigger a deeper flush toward $0.80, $0.62, or $0.51.
From a technical perspective, XRP ran into resistance at the channel’s top on the weekly chart. It is now heading to the channel’s mid-range, which aligns with the $0.70 to $0.80 support levels.
XRP seeing back and forth
XRP’s current price behavior shows clear indecisiveness, as bulls and the bears engage in tug of war to pull the price in their favor. Binance data shows that whales are actively withdrawing XRP from the exchange, giving credence to the supply-crunch narrative.
Similarly, on-chain metrics suggest that XRP could be embarking on a rally that previously preceded a 500 percent move. That said, the potential bullish moves could evaporate if XRP falls below the $1 level.
