XRP has been making waves in the crypto market, with a significant rally to seven-year highs in recent months, driven by hopes of regulatory clarity under the incoming Trump administration. Despite a recent 7% drop over the weekend, analysts are still optimistic about the future of XRP, with one suggesting that the digital asset might be gearing up for a strong rebound and a possible breakout to $11.

XRP TD Sequential Buy Signal: A Potential Rebound

XRP’s price action in the past few days has caught the attention of crypto analyst Ali Martinez, who highlighted a buy signal generated by the TD Sequential indicator on the 4-hour chart. This technical indicator is often used by traders to identify price reversals by analyzing the closes of previous candles.

Martinez observed that XRP had recently experienced a decline from its highs of $2.5090 to a low of $2.3273. However, the TD Sequential buy signal suggests that the cryptocurrency could be set for a rebound, signaling a potential reversal from its recent price dip.

XRP’s Bullish Pennant Formation: Key Levels to Watch

In addition to the buy signal, Martinez pointed to a bullish pennant formation on XRP’s 12-hour candle chart, which he believes suggests that the digital asset is building up momentum for a possible breakout. This pattern has emerged after XRP reached a seven-year high of $2.9 in early December 2024, followed by a consolidation phase.

Martinez highlighted the $2.73 resistance level as a key barrier that could trigger a significant rally if broken. A breakout above this level, according to his analysis, could propel XRP to as high as $11, aligning with the 1.786 Fibonacci level from the asset’s November 2024 low. This potential price target far exceeds XRP’s all-time high of $3.40, which would represent a massive upside from its current levels.

Potential Correction if Resistance Holds

However, Martinez also cautioned that failure to break through the $2.73 resistance level could result in a price correction, with $2.05 being a potential target. At the time of writing, XRP is trading at around $2.41, indicating that it is still within a critical range where either a breakout or a correction could occur.

The possibility of a rally to $11, while exciting for XRP holders, hinges on the market’s ability to break key resistance levels. The 1.786 Fibonacci level at $11 represents a significant bullish target, but XRP will need to maintain its upward momentum and break through these levels to reach new highs.

What’s Next for XRP?

While there is still uncertainty about whether XRP can break through its resistance and reach $11, the buy signal on the TD Sequential indicator and the bullish pennant formation suggest that the cryptocurrency could be gearing up for a potential price surge. Traders and investors are advised to closely monitor the $2.73 resistance level, as a breakthrough could signal the start of a major rally.

XRP’s recent gains and its technical setup suggest that the digital asset remains in a strong position for further growth, provided it can hold above crucial support levels and break through key resistance zones. With an $11 price target looming, XRP investors are eagerly watching how the price action develops in the coming weeks.