A crypto analyst has highlighted how the Tom Demark (TD) Sequential has provided a buy signal for XRP after the latest pullback.
XRP has seen a TD sequential signal on the 4-hour chart
In a new after on X, analyst Ali Martinez shared a TD Sequential signal that has appeared in the 4-hour price of XRP. The “TD Sequential” here refers to a technical analysis (TA) indicator generally used to identify potential reversal locations in an asset’s price.
The indicator includes two phases. In the first stage, called the setup, candles of the same color are counted to nine. Once these nine candles, which do not have to be consecutive, are printed on the chart, the TD Sequential flashes a reversal signal. If the candles leading to the completion of the setup were green, the signal obviously behaves like a bearish signal, while being red implies a possible bottom formation.
After the installation is over, the second phase known as the countdown begins. This phase works much the same as the first, with the only difference being that it involves a total of thirteen candles, not nine. After the end of the countdown, the price is considered to have reached a new point of trend exhaustion.
Here is a chart showing the TD Sequential signal that recently appeared for XRP on the 4-hour time frame:
As shown in the chart above, the XRP 4-hour price has just seen the rise of a TD Sequential setup. This signal has arrived as the cryptocurrency is down more than 4% from its high of $1.45.
Since these are red candles, the completion of the setup suggests that a bullish reversal for the asset could occur in the near term. “To me, this suggests that the local depletion is over and that XRP is ready to recover,” Martinez said.
The analyst noted that the TD Sequential has been accurate in anticipating trend shifts in the token lately. An example of this is visible in the graph; the high of $1.45 from earlier this week coincided with a sell signal in the indicator.
“I’m looking for a move back towards the $1.45 resistance, with a secondary target of $1.80 once we clear the overhead inventory,” Martinez added. It now remains to be seen whether the signal will pay off for the cryptocurrency or whether the bearish trend will continue in the near future, rendering the scheme invalid.
XRP price
At the time of writing, XRP is trading around $1.39, down 1.5% in the past 24 hours.