XRP Pulls Back, But TD Sequential Flashes Buy Signal

A crypto analyst has highlighted how the Tom Demark (TD) Sequential has given a buy signal for XRP following its latest pullback.

The indicator involves two phases. In the first phase, called the setup, candles of the same color are counted up to nine. Once these nine candles, which don’t have to be consecutive, have been printed on the chart, the TD Sequential flashes a reversal signal. Naturally, if the candles leading up to the setup’s completion were green, then the signal acts as a bearish one, while them being red implies a possible bottom formation.

After the setup is over, the second phase, known as the countdown, picks up. This phase works pretty similarly to the first one, with the only difference being that it involves a total of thirteen candles, not nine. Following the end of the countdown, the price is assumed to have arrived at another point of trend exhaustion.

Now, here is a chart that shows the TD Sequential signal that has emerged for XRP on the 4-hour timeframe recently:

Since the candles involved have been red ones, the setup’s completion suggests that a bullish reversal could happen next for the asset in the short term. “To me, this suggests the local exhaustion is over, and XRP is ready to rebound,” said Martinez.

The analyst noted that the TD Sequential has been accurate at anticipating trend shifts in the token recently. One example of this is visible in the chart; the $1.45 high from earlier this week coincided with a sell signal in the indicator.

“I’m looking for a move back toward the $1.45 resistance, with a secondary target of $1.80 once we clear the overhead supply,” added Martinez. It now remains to be seen whether the signal will pay off for the cryptocurrency or if the bearish trend will continue in the near future, invalidating the setup.

At the time of writing, XRP is trading around $1.39, down 1.5% in the last 24 hours.