Indicator Triggers Sell Signal for Ripple (XRP) as Price Dips: Time to Dump the Tokens?

Ripple technical analysis has not been positive in the past two days. The price has seen more than a 7% dip within that timeframe, and there is likely room

A technical indicator has signaled a sell for Ripple (XRP) as the price continues to dip.

After rising more than 70% in the past two weeks, XRP price has seen a 7% dip in the past two days. The cryptocurrency trades at $0.41 at the time of writing.

Adding to the bearish sentiment, Ali, a popular crypto analyst on X, also noted that the TD Sequential indicator is signaling a sell.

“XRP may be set for a pullback, as the TD Sequential indicator flashes a sell signal on the daily chart,” he noted, drawing attention to what technical traders consider a significant warning sign.

The TD Sequential indicator, which is widely respected in technical analysis circles, has completed a 9-count on the XRP/USDT chart as noted by Ali. This pattern typically suggests an imminent trend reversal. Adding weight to this signal, the latest candles are in red, reinforcing expectations of price retreat after recent gains.

Trendline Analysis Shows Critical XRP Support LevelAfter zooming out from immediate indicators, the XRP daily timeframe chart reveals an ascending trendline that has served as reliable support throughout recent price action.

While XRP is currently pulling back from its recent highs, the cryptocurrency still trades above this trendline, suggesting that the broader bullish structure is yet to be compromised.

This trendline marks a critical technical level that could determine XRP fate in upcoming trading sessions. If this support holds firm, it could provide a springboard for price recovery and continuation of the broader uptrend.

However, a decisive break below this trendline would trigger significant concern. Such a breakdown could activate stop-loss orders and trigger liquidations, potentially accelerating downward momentum.

Potential Scenarios for XRP Price Moving ForwardThe market appears poised between two distinct possibilities. In the bullish case, if buyers step in to defend the price above the trendline, XRP could stabilize and resume its upward movement. This scenario would likely maintain investor confidence and validate the asset’s longer-term positive outlook.

Conversely, a clear break below the trendline would confirm a trend reversal, significantly increasing the likelihood of deeper price declines as selling pressure intensifies.

Is This Time to Sell XRP Token

For now, the current pullback remains within acceptable parameters as long as price action respects the established trendline support.

Short-term traders might need to reconsider their entries if XRP price breaks below this trendline. However, long-term traders might want to secure some profit if the price shows signs of a quick sell-off.

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