The legal battle between Ripple and the SEC is heating up. In this environment, the altcoin price is giving a ‘sell signal’ due to some technical indicators. Crypto analyst Ali Martinez has issued a warning to XRP traders. According to the analyst, a bearish divergence occurred on an XRP chart.
Is altcoin price in danger zone?
cryptocoin.com As you follow, Ripple (XRP) has had a bumpy ride this year. Despite this, it has been on a short-term relief rally lately. Since the start of Ripple’s lawsuit against the Securities and Exchange Commission (SEC) in December 2020, the altcoin price has reacted strongly to recent events in the courtroom. While the crypto community awaits the final outcome of the case, the altcoin is now consolidating at $0.35.
However, according to crypto analyst Ali Martinez, XRP will take a pause in its rally due to some technical indicators. Martinez points out that the TD Sequential (TDS), an instrumental tool designed to pinpoint the exact time for trend exhaustion and price reversal, shows a strong ‘sell signal’ on XRP’s four-hour price chart. Check out this article for accurate predictions of TDS with more than 25 signals. He also made the observation that investors should expect a bearish bias for XRP as it bears against the Relative Strength Index (RSI).
The judgment will set a precedent
In fact, despite the recent price hikes, the core value of XRP will largely be determined by the outcome of the ongoing dispute between Ripple and the SEC. The final statements of both parties regarding the case have been completed. After that, the SEC made a request to seal some documents. Thus, the case began to heat up.
Analysts expect massive price action in XRP if the legal dispute is resolved positively. Recently, US congressional candidate January Walker has highlighted the importance of Ripple’s possibility of defeating the SEC in the lawsuit.
Altcoin reverses BUSD in market cap
Meanwhile, XRP recently reversed BUSD, taking the 6th place by market cap. This comes after observing massive whale activity, where the number of XRP whales and shark addresses holding 1 million to 10 million coins recently reached an all-time high.
Wrapped XRP on BSC has become one of the leading cryptocurrencies by trading volume among the top 2,000 investors on BNB Chain, according to a post by whale-tracking platform WhaleStatsBSC on BNB Chain.
These big crypto holders have moved staggering amounts of XRP over the past few days. So this coincided with the big whale event. In the last 24 hours, a total of 35,000,000 XRP tokens have been transferred to the Bittrex exchange from a wallet affiliated with Bitstamp.