XRP Experiences 9.5% Decline as TD Sequential Indicates Possible Trend Reversal

XRP's price has fallen by 9.5% as the TD Sequential indicator suggests a potential trend reversal, while Ethereum presents a bearish setup on its 12-hour chart—prompting traders to remain vigilant for potential changes in market direction.

Key Takeaways

XRP's price dropped by 9.5% amid signals of a potential trend reversal.
The TD Sequential indicator, known for highlighting reversal points, produced a buy signal on XRP’s weekly chart.
The indicator operates in two phases: setup and countdown, helping to identify market trends.
XRP's recent performance shows nine consecutive red candles, hinting at a conclusion of the bearish trend.
Ethereum's 12-hour chart shows a bearish setup, indicated by nine green candles leading to price declines.

XRP and Ethereum TD Sequential buy and sell signals chart

XRP's TD Sequential Analysis

According to cryptocurrency analyst Ali Martinez, XRP experienced a significant decline of 9.5% as the Tom Demark (TD) Sequential indicator suggested a possible trend reversal. This technical analysis tool is designed to help traders pinpoint potential reversal points in asset prices. Recently, the TD Sequential generated a buy signal on XRP’s weekly chart.

Martinez noted that the TD Sequential has been particularly effective in identifying trend shifts, especially for Solana (SOL), which has experienced several turns since March 2023.

The TD Sequential indicator comprises two main phases: setup and countdown. During the setup phase, the indicator tracks candles of the same direction up to nine. Once nine candles are reached, a reversal signal is generated—deemed bullish if follows a series of red candles, and bearish if it follows green candles. The countdown phase then counts up to thirteen candles, which helps to identify potential exhaustion in the trend and suggest a forthcoming reversal.

Bearish Signal for XRP

Martinez's analysis revealed that XRP's weekly chart formed a TD Sequential setup featuring nine red candles. This indicates that the ongoing bearish trend may be nearing its end. The signal was detected as XRP's price fell sharply after a significant drop the day before.

Ethereum has also shown signs of a TD Sequential setup. Martinez reported that Ethereum’s 12-hour chart completed a setup that included nine green candles, generating a bearish signal. Following this indication, Ethereum’s price fell, negating some of its previous recovery gains.

While the TD Sequential indicator has offered these predictions, it remains to be seen whether the suggested reversals will actually happen. Market participants are closely watching to determine if further bearish trends will continue or if a reversal will take place.