XRP was a top gainer in recent months as a result of trader optimism and positive expectations in the Ripple lawsuit.
Ripple scored a major win in the ongoing lawsuit as District Judge Torres ordered the release of documents about former SEC official William Hinman.
According to CoinGecko data, XRP has gained 37% monthly. Owing to the current market sell-off, XRP’s price dipped in line with other cryptocurrencies’ drops. At the time of publication, XRP was down 5.8% at $0.489.
$XRP | The TD Sequential presents a sell signal on #XRP 3-day chart, anticipating a correction to $0.42 or even $0.39. pic.twitter.com/MxjIRutdr4
— Ali (@ali_charts) October 10, 2022
According to crypto analyst Ali, the current drop in XRP’s price might lead to a cascading decline to as low as $0.39. According to the analyst, TD Sequential is indicating a sell signal for XRP, suggesting a further price decline to $0.42 or even $0.39.
The last time the XRP price presented a sell signal on the TD sequential was on Sept. 24, as reported by U.Today. Subsequently, the XRP price fell nearly 25% from the Sept. 23 high of $0.558 to the Sept. 28 low of $0.417 before the price recovered.
XRP price action
After marking five consecutive days of gains since Oct. 3, XRP attempted a push above the $0.55 barrier but was resisted by the bears. If further declines ensue, the seller might attempt to push the price next to $0.47 ahead of the MA 200 support at $0.456.
A drastic decline might see bears targeting the $0.40 level at the MA 50 next. A bounce off of this might suggest that XRP might consolidate between the $0.41 and $0.56 levels for a little extra time.
Meanwhile, positive news might invalidate this bearish forecast as in the past. Ripple on Tuesday announced its first On-Demand Liquidity (ODL) customer in France as it joins forces with Lemonway, a Paris-based payment provider for online marketplaces. Ripple also announced a second new ODL customer, its first in Sweden. Swedish money transfer provider Xbaht enables money movement between Sweden and Thailand.