A crypto analyst has highlighted how the Tom Demark (TD) Sequential recently issued a buy signal for XRP, a potential sign that a near-term recovery is underway.
TD Sequential has formed a bullish setup for XRP
In a new after on X, analyst Ali Martinez discussed a TD Sequential signal that has appeared on the 4-hour price of The TD Sequential here refers to a technical analysis (TA) indicator that is typically used for spotting trend reversals in the asset’s price. It involves two phases, but in the context of the current discussion the first phase, called the design, is that of relevance.
During installation, the TD Sequential counts candles of the same color up to nine. Once the nine candles are lit, the indicator signals a possible reversal. Naturally, the signal is bullish if the setup ends after nine red candles, while it is bearish if it involves green candles.
Here is the chart shared by Martinez showing the TD Sequential setup that has appeared in the 4-hour price of XRP:
As shown in the chart above, a downward trend in price has led to the formation of this TD Sequential setup. The indicator now shows a buy signal for XRP. “I think there could be a recovery towards $1.35 before the trend continues,” Martinez said. It now remains to be seen how the price of the asset will develop in the coming days given this signal.
In other news, recent XRP buyers are in immense pain right now, as on-chain analytics firm Santiment highlighted in an after. The metric cited by Santiment is the market value to realized value ratio (MVRV), a popular indicator that tracks the profit-loss status of the investors or addresses on the network as a whole.
As the chart below, shared by the analytics firm, shows, the 30-day version of this metric, which tracks the win-loss status of buyers over the past 30 days, has recently plunged deep into negative territory.
Following the indicator’s sharp decline, the average XRP buyer over the past month has an unrealized loss of over 47%, which is the lowest the indicator has been since December 2020. “Historically, MVRVs (average trading returns) will always average out to 0%, making this time an extremely undervalued zone for XRP,” Santiment explains.
XRP price
XRP has been stuck in consolidation lately as its price is trading around the $1.33 level.