15% drop, XRP flashes buy signal, depends on $1.25 level per Ali Martinez

The cross-border token, Ripple, has dropped approximately 15% over the last month and is currently priced near $1.30, according to CoinGecko. Despite this, a significant signal suggests a major bounce might be imminent.

Popular analyst Ali Martinez indicated that XRP's TD Sequential indicator displayed a buy signal on the three-day chart. He noted that the preceding three similar setups resulted in price increases of 31%, 24%, and 18%.

Martinez also argued that the bullish path hinges upon the crucial $1.25 level. He stated, "Hold it, and XRP could rebound toward $1.40. Lose it while whales continue taking profits, and $0.98 could be next."

This warning follows a prior statement detailing worrying factors suggesting a deeper decline past the $1 psychological mark might be approaching. These factors include some of the largest whales on the XRP Ledger reducing their exposure and an increase in XRP held on exchanges, which raises immediate selling pressure.

He further noted, "The technical level I'm watching is $1.26, the lower boundary of a channel XRP has been forming since August." A breach below that support could initially push XRP toward $1.11. The channel pattern ultimately projects $0.98, which is about 22% below $1.26, he stated previously.

Earlier this week, Ripple announced a major expansion of its Treasury platform, enabling eligible businesses to manage settlements, liquidity, and cash positions while possibly earning returns on assets like the stablecoin RLUSD. Furthermore, the US Office of the Comptroller of the Currency (OCC) granted final approval to Ripple National Trust Bank, an entity intended to manage RLUSD reserves and serve as a collateral trustee for cryptocurrency holders.

X user Aman commented that XRP has not surged as anticipated but believes a price explosion toward $2 is "coming very soon," suggesting renewed institutional interest might aid a recovery. Last week, spot XRP ETFs returned to positive territory, showing a net inflow of roughly $4.25 million. However, a meaningful reversal requires greater demand from such investors, and the start of the new week presented another red candle, offering little support for a bullish view.