XRP started the week with strong bullish momentum, rising about 7%. However, the altcoin couldn’t sustain this upward move, dropping sharply on Wednesday and continuing to decline. While the outlook for XRP appears bearish, a recent technical indicator suggests the token may be poised for a short-term rebound.
In a January 30 post on X, technical analyst Ali Martinez suggested that XRP could soon see a rebound, depending on certain conditions. This analysis is based on the TD Sequential, a tool used to identify potential pauses or reversals in trends by tracking short-term points of exhaustion.
The TD Sequential has two phases: the Setup Phase (counts 1–9) and the Countdown Phase (up to count 13). A completed “9” count often signals weakening selling pressure, while a full “13” count typically indicates an imminent reversal.
The chart shared by Martinez shows a completed “9” count to the downside, suggesting the momentum behind XRP’s recent decline is nearing exhaustion. This signal coincides with the token approaching a key support level. Martinez notes that if XRP holds above the $1.70 support, a price rebound is possible.
If a rebound occurs from $1.70, the $1.80–$1.85 range could act as resistance. Should the price break through that barrier, $1.90 may become the next key level.
Meanwhile, data from ETF tracking site SoSoValue shows U.S. XRP Spot ETFs have seen cumulative net outflows exceeding $69 million. After three days of positive net inflows totaling $23.87 million earlier in the week, outflows of $92.92 million on Thursday turned the weekly total negative. This follows last week’s net outflows of $40.64 million.
Negative net flows often indicate reduced institutional demand, as more capital is withdrawn than deposited. Given XRP’s recent sharp decline, institutional investors may have contributed to the downturn. However, such outflows can also reflect profit-taking or de-risking rather than a broader bearish outlook.
As of this writing, XRP is trading at $1.74, down about 3.26% over the past day.
Frequently Asked Questions
FAQs TD Sequential Buy Signal for XRP
Beginner Questions
Q What is the TD Sequential indicator
A Its a technical analysis tool used to identify potential price exhaustion points and trend reversals in markets like cryptocurrency It looks for specific sequences in price movements
Q What does a buy signal mean in this context
A It means the TD Sequential indicator is suggesting that XRPs price may have finished a downward move and could be poised for a potential upward reversal or bounce
Q What is the crucial price requirement mentioned
A According to the analyst for the buy signal to be valid XRPs price must close above a specific key level Without that the signal is considered weak or incomplete
Q Is this a guarantee that XRPs price will go up
A No No indicator guarantees future price movement Its a probabilistic signal suggesting a potential buying opportunity based on historical patterns Always do your own research and consider risks
Q Where can I see this TD Sequential signal
A Its typically available on advanced charting platforms like TradingView You would need to add the TD Sequential indicator to an XRP price chart
Intermediate Advanced Questions
Q How does the TD Sequential actually generate a buy signal
A A common buy setup occurs after a downtrend when the price records nine consecutive closes lower than the close four periods earlier A subsequent countdown phase can then trigger a precise buy signal
Q Why is a price close above a certain level so important for this signal
A It acts as confirmation It shows that buying pressure is strong enough to push and hold the price above a significant barrier validating the reversal pattern suggested by the TD Sequential Without it the signal might fail
Q What are common mistakes traders make with TD Sequential signals
A Common mistakes include acting on the signal without the price confirmation ignoring the broader market trend and not using stoploss orders Its also risky to rely on this single indicator in isolation
Q Can you give a practical example of how to use this information
A If