Crypto analyst warns XRP rally may be over
Crypto analyst warns XRP rally may be over
Cryptocurrency Feb 20, 2025 Share
In mid-February 2025, XRP experienced a strong resurgence in the cryptocurrency market. It enjoyed its first significant rally on February 13 and February 14, when it rose from about $2.40 to above $2.80. Additionally, while it subsequently entered into a correction that took it below $2.50 on February 18, it again surged and reached $2.70.
XRP 7-day price chart. Source: FInbold
Though many investors have been hoping that the latest rally heralds the long-awaited soaring to new highs,on-chain expert Ali Martinez shared an X post explaining that the token may instead be facing another correction.
Specifically, the analyst stated that the TD Sequential technical analysis (TA) indicator is hinting that XRP may have already hit a temporary top and that it may soon fall once again.
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$XRP could be gearing up for a pullback, as the TD Sequential indicator flashes a sell signal on the 3-hour chart after the recent 11% rebound! pic.twitter.com/k8SetFIQ8F
— Ali (@ali_charts) February 20, 2025
Martinez provided no insights into how low the token might go in its likely imminent correction, but the current support and resistance levels indicate it will likely find a footing near $2.60 and that it is almost certain to stay above $2.38.
The TD Sequential is a tool developed by the famous market analyst Tom DeMark that utilizes an asset’s historical performance to identify a likely reversal point. Notably, when it last flashed for XRP on February 18, it correctly warned of a short-lived but dramatic drop from $2.62 to $2.51.
XRP fails to meet investor hopes for 2025
Despite the long-standing bullishness, XRP’s 2025 performance has been somewhat disappointing. Indeed, the token recorded a massive rally from its long-held levels near $0.50 after Donald Trump’s re-election sparked the hopes the U.S. will become significantly more crypto-friendly.
The positive momentum was only reinforced when Gary Gensler, the former Securities and Exchange Commission (SEC) Chair known for pursuing an aggressive policy toward the digital assets industry, confirmed he would be stepping down on January 20, 2025 – the day of Trump’s inauguration.
While the original rally took XRP to new highs above $3.30, trading since hasn’t been as kind and the token remained in the rough range between $2.12 and $3 since February 1.
It is noteworthy that XRP is not the only cryptocurrency whose performance has been lackluster in recent weeks.
Bitcoin (BTC) – also expected to soar to new highs both due to the existing positive momentum and Trump’s promises of a strategic BTC reserve – has failed to stay close to its recent all-time highs (ATH) above $107,000 and has mostly been changing hands below $95,000.
Why the cryptocurrency market is stagnating in 2025
The cryptocurrency market has, so far, been beaten down by broad economic and political uncertainty as the ceasefire in Palestine remains frail, Ukraine’s future remains unclear, and as many are fearful of how much Trump’s trade wars could escalate.
The many coins and tokens have also suffered from spillover effects of shocks affecting stocks, such as the technology sector selloff that followed the release of China’s novel DeepSeek artificial intelligence (AI) model and the wider unease that emerged from the latest inflation data.
For XRP itself, the still unresolved matter of SEC’s case against Ripple Labs – a severe headwind for many years – should also not be underestimated.