Crypto analyst JD says a bearish engulfing pattern has appeared on XRP (XRP)’s monthly chart, although he retains a broader bullish view and another X user disputes how the signal should be defined.
In an Oct. 24 post on X, JD linked the pattern to a reversal near the asset’s 21-month exponential moving average (EMA). He explained the label by comparing the red candle’s solid body with the green body in the preceding month; he said the newer body covered the earlier one. He presented that formation as a bearish signal on the monthly timeframe while keeping his wider view bullish.
His chart also shows an ascending support line that he traces to 2020. A gray-and-pink shaded area marks a dollar-cost averaging zone.
X user @AddisonJK challenged the label. AddisonJK said the new candle should move above the earlier candle’s upper wick and close below its lower wick to qualify. JD replied that his method compares the candle bodies and does not require the wicks to cross those boundaries. The two descriptions set different thresholds for classifying the same monthly candle: one weighs the bodies, while the other uses the full wick range.
The monthly-chart post follows JD’s Oct. 18 warning on the weekly chart about a possible deeper XRP decline. He said then that the decline could deepen unless warning signs were negated, but did not specify those signs or give a downside target, as EconoTimes previously reported.
JD said he plans to give Patreon subscribers a more detailed technical update once the monthly candle has closed.
