The XRP price suddenly shot up this weekend to above $ 1.65 and caused euphoria among investors. Analysts quickly talked about a possible breakthrough towards 2 dollars. But within hours, sentiment completely reversed.
XRP fell below $1.50, wiping out almost all weekend gains. Meanwhile, a technical warning signal appeared on the chart that is raising alarm bells among some traders.
XRP rate prints ‘gravestone doji’ on weekly chart
After the sudden rise above $1.65, the XRP price was unable to maintain that level. The week ultimately closed lower, causing a so-called gravestone doji to appear on the chart, according to several analysts.
Such a gravestone doji occurs when the price first rises strongly, but then falls back almost completely towards the opening level. That means buyers lose the fight and sellers take over the initiative. In technical analysis, this is seen as a warning signal of a possible bearish trend reversal.
Crypto analyst Ali Martinez recalls that during a previous formation of this pattern, XRP fell 46 percent in a short time. If history repeats itself, the XRP price could again come under heavy pressure. In that scenario, the psychological limit of $1 is at risk and a decline towards $0.80 could even be possible.
Analysts divided over crash scenario
Not every analyst immediately sees a disaster scenario. CryptoWZRD acknowledges that the gravestone doji on the weekly chart is technically a warning signal. Yet he makes comments. He said much of the move was due to an earlier spike in a market with low liquidity. He calls the setback a healthy correction.
The coming weeks may bring clarity. In a market that remains sensitive to sudden liquidity movements and quickly changing sentiment, a pattern such as a gravestone doji takes on extra significance.
Source: https://newsbit.nl/xrp-koers-toont-gevaarlijk-signaal-na-piek-boven-165-dollar-dreigt-een-crash/
