One analyst explained that XRP has just seen a buy signal on the 3-day chart. The last time the pattern emerged, asset prices rose nearly 60%.
XRP recently formed a TD sequential purchase setup.
new post At X, analyst Ali pointed out how the XRP 3-day chart is currently showing a TD Sequential buy signal. “Tom Demark (TD) Sequential” is a technical analysis indicator commonly used to find points of possible reversal in asset prices.
This metric consists of two steps: setup and countdown. In the former case, up to 9 candles of the same polarity are counted, and after the 9th candle, it can be assumed that the asset has reached a point where a possible direction change is possible.
If the candle nearing the completion of the setup had been green, the price may have reached a high and a bearish reversal may have occurred. Likewise, a red candle can suggest a bottom forming.
Once set up, a long countdown phase of 13 candles begins. After these 13 candles, we can assume that another high or low has been influenced by the price.
XRP recently completed a previous type of step with the 3-day price of TD Sequential. Here is the chart shared by the analyst below:
The pattern that has recently formed in the 3-day price of the cryptocurrency | Source: @ali_charts on X
As you can see in the graph, the TD Sequential setup has recently been completed with 9 red candles for XRP. Naturally, this means that a bottom may now have formed for the asset.
“TD Sequential has proven accurate in predicting XRP’s movements on the 3-day chart,” says Ali. “It is currently showing a buy signal, suggesting that XRP may be ready for a rebound.”
In the chart, the analyst highlighted what happened the last two times such a buy setup was seen for the asset. The last bullish TD Sequential signal appears to have resulted in a rally of nearly 60% for the asset, while the signal before that resulted in a price increase of over 111%.
A similar surge in the cryptocurrency’s current spot price would see the asset rebound towards $0.81. At the same time, a rally of the latter magnitude would imply a breakout above the $1 level.
Obviously, the price increases that may be seen in the latest TD sequential purchase setups do not necessarily have to resemble these surges. Nonetheless, these rallies still provide perspective on just how strong the signals for the cryptocurrency have proven to be over the past few months.
XRP price
XRP extended its losses over the past day, with the price falling another 4% towards the $0.508 level.
Looks like the price of the coin has taken a plunge during the last day | Source: XRPUSD on TradingView
Featured image from Shutterstock.com, chart from TradingView.com
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