A crypto analyst has highlighted how the Tom Demark (TD) Sequential has flashed a buy signal for XRP recently, a potential sign that a short-term rebound may be coming.
TD Sequential Has Formed A Bullish Setup For XRPDuring the setup, the TD Sequential counts candles of the same color up to nine. Once the nine candles are in, the indicator gives the signal for a potential reversal. Naturally, the signal is a bullish one if the setup finished after nine red candles while it’s a bearish one if green candles were involved.
Now, here is the chart shared by Martinez that shows the TD Sequential setup that has appeared in the 4-hour price of XRP:
As displayed in the above graph, a downtrend in the price has led to the formation of this TD Sequential setup. Thus, the indicator is now flashing a buy signal for XRP. “I think a rebound toward $1.35 could come before trend continuation,” noted Martinez. It now remains to be seen how the asset’s price will develop in the coming days, given this signal.
As the below chart shared by the analytics firm shared by the analytics firm shows, the 30-day version of this metric, which tracks the profit-loss status of the buyers from the past 30 days, has dipped deep into the negative zone recently.
Following the sharp decline in the indicator, the average XRP buyer from the past month is in an unrealized loss of more than 47%, which is the lowest that the indicator has been since December 2020. “Historically, MVRV’s (average trading returns) will always average out to 0%, making this current time an extreme undervalued zone for XRP,” explained Santiment.
XRP PriceXRP has been stuck in consolidation recently as its price is trading around the $1.33 level.
