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XRP Price Trap Alert: Analyst Issues Warning

Tue, 06/13/2023 - 14:27
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Gamza Khanzadaev
Analyst spices things up with major warning about price action of XRP
XRP Price Trap Alert: Analyst Issues Warning
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Renowned cryptocurrency analyst Ali Martinez has sounded the alarm on XRP's recent price action. In a tweet, Martinez cautioned traders against falling into a potential price trap, advising them to exercise caution before making any hasty moves. The analyst noted that XRP previously surpassed the $0.55 mark, enticing breakout traders to go long, only to experience a sudden reversal that left them "rekt."

XRP Suddenly Gains 7% as Big Reveal Made in Ripple Lawsuit

To provide further clarity, Martinez shared a chart indicating the critical price level for XRP consolidation, which stood above $0.54 per token. This consolidation would require the candle to close above this threshold, with longer time frames being preferable.

XRP to USD by CoinMarketCap

Shortly after breaking through a crucial resistance level, XRP encountered selling pressure and the price dipped below $0.54. This outcome seems to validate Martinez's cautionary words and highlights the importance of confirming price movements through candlestick patterns. However, it remains essential to monitor the candle's closure on larger time frames, such as the four-hour or daily charts, to make a more accurate assessment.

XRP Paints Divergence Ahead of Hinman Docs Release

In addition to technical factors influencing XRP's price movement, fundamental factors have also come into play. Recently, the long-awaited Hinman documents pertaining to the Ripple lawsuit, were made public. These documents, involving a former SEC official, were anticipated to shed light on the ongoing three-year legal battle against Ripple and XRP.

Nonetheless, as is customary with such fundamental events, the impact on XRP's price appears to have already been factored in by the market. Furthermore, contrary to expectations, the disclosure of these documents failed to trigger the anticipated market boom.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.