Crypto analyst Ali Martinez, known as Ali Charts, has highlighted the formation of a Gravestone Doji candlestick pattern on the XRP daily chart, signaling a potential bullish exhaustion and bearish reversal. Martinez noted that this pattern is also appearing on the weekly chart, with historical precedent suggesting significant downside risk. "The last time XRP printed a gravestone doji was on the weekly chart, and the price dropped 46%," he stated.
The pattern formed after XRP rallied from approximately $1.35 to $1.65, encountering resistance. A Gravestone Doji occurs when the opening and closing prices are nearly identical, creating a long upper shadow with little to no body, and is considered significant when it appears after an uptrend.
Technically, XRP faces immediate resistance near $1.50-$1.54, with more substantial barriers at the 50-day Exponential Moving Average (EMA) around $1.77 and a key cluster of the 200-day EMA and a descending trendline near $2.10-$2.14. Support is found at $1.40, $1.35 (the recent range floor), and major historical levels near $1.15-$1.12.
At the time of reporting, XRP was trading around $1.49-$1.50, down roughly 2-3% over 24 hours amidst broader market uncertainty. The asset recently reversed five consecutive weeks of losses, ending the prior week up 3.13%.
Fundamentally, the news is mixed. Ripple CEO Brad Garlinghouse's appointment to a CFTC advisory committee and the activation of the XLS-85 token escrow feature on the XRP Ledger mainnet are viewed positively. However, these developments have yet to translate into sustained price momentum or significant ETF-related capital inflows, with XRP remaining down significantly from its yearly high near $2.40.
