XRP Faces 37% Plunge as Bearish Pattern Emerges, Analyst Warns

Crypto analyst and trader Ali Martinez has expressed a bearish outlook on the payments altcoin XRP, suggesting that it could experience a significant decline. Martinez, who has a substantial following on the social media platform X, has identified a head-and-shoulders pattern on the daily time frame for XRP, which is a bearish indicator. This pattern suggests that the asset is losing bullish momentum after failing to reach new highs with its right shoulder. XRP, currently the fourth-largest crypto asset by market cap, is trading at $2.05 at the time of writing. According to Martinez, XRP could plummet by around 37% from its current level.

Martinez also provided insights into the potential path forward for Bitcoin (BTC). He noted that Bitcoin could turn bullish if it manages to retest a key price level as support. Specifically, Martinez is closely monitoring Bitcoin's short-term holder (STH) realized price, a metric that tracks the average price at which all STHs acquired their coins. STHs are defined as wallets that have held their coins for 155 days or less. Martinez believes that the first signal of Bitcoin resuming its bull run would be reclaiming the short-term holder realized price at $90,570. Bitcoin is currently trading at $83,300.

Additionally, Martinez observed signs of profit-taking in the Bitcoin market as older coins return to crypto exchanges. He cited data from the blockchain analytics platform, indicating that more than 1,058 BTC, worth slightly over $88 million at the current price, were moved by long-term holders in just one day. Long-term holders are entities that have kept their coins inactive for more than 155 days.

Turning to Chainlink (LINK), Martinez warned that the altcoin could turn bearish as it tests an ascending trendline on the weekly chart. This trendline has kept the altcoin bullish since July 2023. Chainlink is currently trading at $12.63.