Prominent market watcher JD has reiterated his cautious outlook on $XRP, noting that his previous warnings of a potential price slide have played out in the latest correction. JD highlighted that a key bearish divergence he previously identified in XRP’s chart signaled increasing selling pressure, ultimately resulting in the most recent drop in price.
JD’s Earlier XRP Warning Identified a Potential Breakdown
In his most recent post, JD referenced an earlier technical analysis where he signaled a likely breakdown in XRP’s ongoing rally. He pointed to a rising wedge pattern in the cryptocurrency’s price movements, accompanied by a notable bearish divergence on the three-day Relative Strength Index (RSI).
The divergence, which occurred as XRP posted higher highs while the RSI trended lower, indicated that underlying buying momentum was weakening despite surface-level price gains. JD interpreted this discrepancy as an early indicator that upward momentum was losing steam, with selling forces starting to build against short-term bullish sentiment.
He described this growing selling pressure as an advance warning to XRP traders. JD advised market participants to closely monitor the potential for a breakdown, emphasizing that confirmation of a move beneath the rising wedge could signal a deeper retracement in price.
During this period, JD explicitly cautioned traders against disregarding chart-based signals, arguing that technical divergences like the one observed in XRP often precede substantial corrections in crypto markets.
Mini dictionary: Relative Strength Index (RSI) is a widely used momentum oscillator that measures the speed and change of price movements. RSI values range from 0 to 100, with readings above 70 indicating overbought conditions and below 30 signifying oversold conditions.
JD noted that bearish divergence in XRP’s technicals was “playing out perfectly,” and reminded followers that the price drop reflected the forecast he made a month earlier, which was based on warning indicators within the rising wedge pattern and declining RSI readings.
Analyst Waits for Key XRP Accumulation Levels
Rather than increasing his token holdings amid current market volatility, JD indicated that he would await specific price levels before buying more XRP. He stressed that his accumulation strategy is focused on dollar-cost averaging (DCA) during periods of substantial market fear.
JD has emphasized patience, stating he will avoid buying during uncertain conditions and is instead preparing to add to his position at predetermined DCA targets if the market experiences further declines. He described these levels as entry points that typically coincide with what he considers “extreme fear” phases, when broader sentiment turns sharply negative.
This approach stands in contrast to strategies that seek to purchase assets during sudden dips driven by brief negative sentiment. JD’s outlook suggests he favors waiting for significant price retracements, maintaining that disciplined patience can offer better opportunities for long-term investment returns in volatile markets.
JD reaffirmed his commitment to loading up again on XRP only if the price moves to his selected DCA levels during extended periods of intense market fear, underlining a strategic and disciplined accumulation plan.
As a technical analyst who posts under the alias “JD” on social media platforms, he has developed a following for his detailed chart breakdowns and reserved, risk-managed approach to accumulation.
