A crypto analyst has pointed out that the Tom Demark (TD) Sequential indicator recently flashed a buy signal for XRP, which could mean a short-term rebound is on the way.
TD Sequential Shows a Bullish Setup for XRP
In a new post on X, analyst Ali Martinez discussed a TD Sequential signal that appeared on XRP’s 4-hour price chart. The TD Sequential is a technical analysis tool commonly used to spot trend reversals in an asset’s price. It has two phases, but for this discussion, the first phase—called the setup—is the key one.
During the setup phase, the indicator counts up to nine candles of the same color. When nine candles are completed, it signals a potential reversal. If the setup ends after nine red (downward) candles, it’s a bullish signal. If it ends after nine green (upward) candles, it’s bearish.
Here’s the chart Martinez shared, showing the TD Sequential setup on XRP’s 4-hour price:
As the chart shows, a downtrend in price led to this TD Sequential setup, so the indicator is now giving a buy signal for XRP. “I think a rebound toward $1.35 could happen before the trend continues,” Martinez noted. It remains to be seen how XRP’s price will move in the coming days after this signal.
In other news, recent XRP buyers are facing significant losses, according to on-chain analytics firm Santiment in an X post. The metric they used is the Market Value to Realized Value (MVRV) Ratio, which tracks the profit or loss of investors or addresses on the network.
As the chart shared by the analytics firm shows, the 30-day version of this metric—which tracks the profit or loss of buyers over the past 30 days—has dropped deep into negative territory recently. After this sharp decline, the average XRP buyer from the last month is sitting on an unrealized loss of over 47%, the lowest level for this indicator since December 2020. “Historically, MVRV (average trading returns) always averages out to 0%, so this current time is an extremely undervalued zone for XRP,” Santiment explained.
XRP Price
XRP has been stuck in consolidation recently, with its price trading around $1.33.
Featured image from Dall-E, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs about the XRP TD Sequential buy signal and the analysts rebound prediction written in a natural conversational tone
BeginnerLevel Questions
1 What is a TD Sequential buy signal
Its a technical analysis tool that counts price bars to identify when an asset is likely to reverse from a downtrend to an uptrend A buy signal means the tool thinks the price has dropped enough to bounce back soon
2 Does this mean XRPs price will definitely go up
No The TD Sequential is a probability indicator not a guarantee It suggests a higher chance of a rebound but the market can always move sideways or down due to news regulation or broader market trends
3 Who is the analyst and why should I care
Analysts vary in credibility The prediction becomes more meaningful if the analyst has a good track record and explains their reasoning Always check their past calls and whether they use the TD Sequential alongside other indicators
4 Should I buy XRP right now because of this signal
Not automatically A signal is just one piece of information Smart investors wait for confirmation and consider their own risk tolerance Never invest based on a single indicator
IntermediateLevel Questions
5 How reliable is the TD Sequential buy signal on XRP
On daily timeframes it can be moderately reliable but its not perfect False signals happen especially in strong bear markets Historical accuracy on XRP variesbacktest it yourself or check cryptofocused analysis platforms
6 What timeframe is the signal on
This matters a lot A daily signal is more significant than a 15minute signal The question doesnt specify but most analyst predictions focus on the daily or weekly chart for rebound calls Always ask What timeframe
7 How do I confirm the signal before acting
Look for
A green candle closing above the signal candles high
Rising trading volume
Support from other indicators
No major negative news
8 Whats the difference between a rebound and a trend reversal
A