Cryptocurrency analyst and trader Ali Martinez predicts that XRP could see lower prices as it is rejected by a key resistance level.
Martinez tells are 36,200 followers on the social media platform
According to the crypto trader, the rejection suggests that XRP may correct towards the pattern’s diagonal support.
“XRP is moving within an ascending parallel channel! After rejection at the channel midline, XRP could see a pullback to the lower bound around $0.55.”
Although ascending parallel channels are generally bullish patterns over the long term, the price action within the channel varies from bearish to bullish and vice versa, with the upper bound acting as resistance and the lower bound acting as support.
XRP is trading at $0.611 at the time of writing, still below the channel midline.
As for Bitcoin (BTC), Martinez say that the flagship crypto asset is about to move into a zone where it may experience even more downward pressure based on data from 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 these levels could prompt holders to cut their losses.
“As selling pressure increases, watch for a possible decline into the next demand zone between $37,500 and $38,700. Here, 1.28 million addresses contain 553,000 BTC.”
Bitcoin is trading at $43,051 at the time of writing.
Martinez too say that Bitcoin is sending a bearish signal as network growth has fallen over the past month, according to data from crypto analytics firm Glassnode.
“There has 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 is crucial that the number of new BTC addresses increases. This would provide the necessary support for continued bullish momentum.”
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: DALLE3