TLDR:
- XRP records a “gravestone candle” pattern on the weekly chart, suggesting a strong rejection of high prices.
- Historically, this technical formation preceded a 46% crash in the value of Ripple’s asset.
- The current price of $1.48 reflects a 6.1% daily drop as the market evaluates the shift in momentum.
A rare technical signal that could place XRP in a bearish trend has sparked alarms in the crypto market. Regarding this, analyst Ali Martinez indicated that the asset has printed a “Gravestone Doji” on the weekly chart—a formation reflecting aggressive rejection from sellers after a failed attempt by buyers to maintain higher levels.
The detected technical pattern is highly relevant due to its history of accuracy on long-term timeframes. The last time this asset showed a similar pattern, the price suffered a drastic 46% correction, raising fears of a massive capitulation among current investors trading near the $1.48 level.
Price action is being closely monitored by institutional traders, as weekly candles carry more weight than short-term signals. The current close suggests that bullish momentum has been exhausted, leaving a long upper wick that symbolizes token distribution by large holders.
Risk Analysis and Technical Invalidation Scenarios
To confirm that we are indeed facing an XRP bearish trend, bears will need to force consecutive weekly closes below key short-term support levels. If selling pressure continues, downward volatility could increase, seeking lower liquidity levels that align with the historical precedent of a nearly 50% drop.
However, analysts emphasize that candlestick patterns should not be interpreted in isolation, as Bitcoin dominance and global liquidity remain determining factors. A recovery above the immediate resistance would invalidate this bearish signal, transforming the current panic into a possible consolidation move before a new rally.
In summary, XRP is at a technical crossroads where history and present momentum clash violently. The market will remain attentive to the close of the next candle to determine if the historical crash repeats or if buyers manage to absorb the existing supply.
