XRP It is showing signs of a potential short-term reversal after a key technical indicator triggered a fresh buy signal, raising expectations that bullish momentum could return following the token’s recent pullback.
The latest signal, the most prominent Cryptocurrency Trading expert Ali Martinez at X mail On May 8, it comes from the TD Sequential indicator, a technical analysis tool used by traders to identify trend exhaustion and potential reversal points.
According to the setup, the indicator previously issued a sell signal near XRP’s recent local peak at $1.46 on May 6.
This bearish signal was followed by a roughly 5.5% correction over the next two days, boosting confidence among traders closely tracking the indicator’s accuracy during the recent XRP volatility.
The indicator has now turned bullish again, with XRP stabilizing after a series of bearish four-hour candles pushed the asset down from its recent highs.
A new buy signal “9” indicates that selling pressure may be easing, while buyers may be preparing for another upward move.
At the same time, bearish momentum appears to be weakening, with recent candles becoming smaller and more compressed while XRP consolidates above short-term support.
Traders are now watching whether XRP can reclaim the $1.45 resistance area, the previous local high. A break above this level could pave the way for a stronger rally towards $1.80, where stronger selling pressures may emerge.
The renewed bullish setup has also revived speculation about a broader move towards the key $3 level, although XRP will still need to break through several resistance areas and maintain stronger trading volume across higher time frames.
XRP Path to $12
On the other hand, a pseudonym encryption analyst Makeball male XRP is trading near a key technical support level that has historically preceded strong rallies, with the asset potentially targeting $12 if previous recovery patterns are repeated.
The analysis indicates that XRP is retesting the lower limit of the long-term bullish parallel channel after pulling back from the highs near $3.50.
Similar retests have previously led to major breakouts, including a 580% rally in late 2024 and a massive 65,900% rally during the 2017 bull cycle.
The chart also shows XRP’s RSI approaching the 40 area, an area that previously identified key reversal points.
Based on the recurring channel structure, the analyst believes that a bounce from current levels could send XRP towards the upper boundary of the channel, with $12 emerging as the next major long-term target.
By press time, XRP was trading at $1.42 after rising nearly 2% over the past 24 hours. On the weekly time frame, the asset rose by 2.5%.
