A crypto analyst has pointed out that the Tom Demark (TD) Sequential indicator has flashed a buy signal for XRP after its recent price drop.
XRP Gets a TD Sequential Signal on Its 4-Hour Chart
In a new post on X, analyst Ali Martinez shared that a TD Sequential signal has appeared on XRP’s 4-hour chart. The “TD Sequential” is a technical analysis tool used to identify potential price reversals.
The indicator works in two phases. The first phase, called the setup, counts up to nine candles of the same color. These candles don’t need to be consecutive. Once nine are printed, the TD Sequential gives a reversal signal. If the candles leading up to the setup were green, it’s a bearish signal. If they were red, it suggests a possible bottom.
After the setup ends, the second phase, called the countdown, begins. It works similarly but counts thirteen candles instead of nine. When the countdown finishes, the price is expected to have reached another point of trend exhaustion.
Here’s a chart showing the recent TD Sequential signal for XRP on the 4-hour timeframe:
As the chart shows, XRP’s 4-hour price just completed a TD Sequential setup. This signal came after the cryptocurrency dropped more than 4% from its $1.45 high. Since the candles involved were red, the setup’s completion suggests a bullish reversal could happen soon in the short term.
“To me, this suggests the local exhaustion is over, and XRP is ready to rebound,” Martinez said.
He noted that the TD Sequential has been accurate at predicting trend changes for XRP recently. For example, the $1.45 high earlier this week coincided with a sell signal from the indicator.
“Iām looking for a move back toward the $1.45 resistance, with a secondary target of $1.80 once we clear the overhead supply,” Martinez added.
It remains to be seen whether this signal will work out for XRP or if the bearish trend will continue and invalidate the setup.
XRP Price
At the time of writing, XRP is trading around $1.39, down 1.5% in the last 24 hours.
Featured image from Dall-E, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs about XRP pulling back while the TD Sequential indicator flashes a buy signal written in a natural tone with clear simple answers
BeginnerLevel Questions
1 What does XRP has pulled back mean
It means the price of XRP has dropped from a recent high Think of it like a stock that went up fast and then took a small step backward
2 What is the TD Sequential indicator
Its a tool that counts price bars to spot when a trend might be exhausted It helps predict when a price could reverse direction
3 What does a buy signal from the TD Sequential mean
It means the indicator has finished its countdown and is suggesting the current downtrend or pullback is likely to end soon making it a good time to consider buying
4 If I see a buy signal should I buy XRP immediately
Not necessarily A buy signal is just a hint not a guarantee Its best to wait for other confirming signs before making a move
5 Is this signal always right
No No indicator is perfect The TD Sequential can give false signals in strong trends or during unexpected news events Always do your own research
IntermediateLevel Questions
6 How does the TD Sequential work on a pullback
On a pullback the indicator typically counts down from a previous high When it reaches 9 or 13 it suggests selling pressure is fading and a bounce might happen
7 Whats the difference between a Setup and a Countdown in the TD Sequential
Setup A series of 9 consecutive bars where the close is lower than the close 4 bars earlier This signals a potential reversal
Countdown A longer count that follows the Setup used for stronger reversal signals
8 Can the TD Sequential signal fail in a strong downtrend
Yes In a very strong bear market the signal can be reset or ignored because the trend is too powerful Its less reliable in extreme panic selling