XRP Sees 9.5% Decline, Yet TD Sequential Indicates a Buy Signal

In recent market activity, a cryptocurrency analyst has revealed that the Tom Demark (TD) Sequential indicator has issued a buy signal on the weekly chart for XRP.

Key Takeaways

XRP has witnessed a 9.5% drop recently, trading around $2.
The TD Sequential indicator has signaled a potential buy on the weekly chart for XRP, indicating a possible end to the bearish trend.
The TD Sequential consists of a setup phase (counting nine candles) and a countdown phase (counting thirteen candles).
Ethereum also provides a TD Sequential buy signal, although it has recently seen its price decline.
Traders are closely watching both assets for potential price reversals.

XRP

Understanding the TD Sequential Buy Signal for XRP

Analyst Ali Martinez recently shared insights on X about a TD Sequential signal that has emerged on XRP’s weekly chart. This indicator, used in technical analysis (TA), helps to identify potential reversal points in the price of an asset.

The TD Sequential indicator operates in two main phases: the setup and the countdown. During the setup phase, it counts up to nine candles of the same color (either red or green). Once nine candles are registered—regardless of whether they appear consecutively—a reversal signal is generated. A bullish signal is indicated if the preceding candles are red, while a bearish signal may occur if they are green.

After the completion of the setup, the countdown phase begins, which is similar but counts up to thirteen candles instead. Once these thirteen candles are completed, it suggests the asset may have reached another potential reversal point, signalling a change in trend.

Martinez shared a chart showing the TD Sequential setup formed on XRP's weekly price:

As shown in the graph, XRP has completed the TD Sequential setup, consisting of nine red candles, indicating that the bearish trend may have reached its conclusion. This signal comes as XRP's price has dropped below the $2.0 mark, reflecting a notable decline of 9.5% in just one day.

The next question is whether XRP will rebound as the TD Sequential suggests or if it will continue its downward trend. Ethereum has also shown a TD Sequential setup, which has reportedly held.

In another post, Martinez noted that Ethereum's 12-hour price chart formed a setup with nine green candles on Saturday.

Ethereum TD Sequential

The recent bearish signal for Ethereum has caused its price to fall back to the $2,750 level, wiping out its recent gains.

Current XRP Price Status

As of this writing, XRP is trading at approximately $2, experiencing a decline of over 9% over the last week.

XRP Price Chart

The XRP price trend over the past five days | Source: XRPUSDT on TradingView