XRP Buy Indication Flashes, Analyst Predicts Duration of Uptrend
In an insightful analysis, a seasoned analyst has identified a buy signal on the weekly chart of XRP, suggesting a potential uptrend for the digital asset. The key indicator used is the Tom Demark (TD) Sequential, a renowned technical analysis tool employed to detect potential reversal points in an asset’s price.
This indicator consists of two phases. The initial phase, known as the “setup,” lasts for nine candles. During this phase, candles with the same direction are counted up to nine, indicating a possible top or bottom formation after the ninth candle.
If the completion of the setup exhibits nine consecutive green candles, indicating a bullish trend, the TD Sequential signals a shift towards the bearish direction. Conversely, a series of red candles suggests a buy signal for the asset.
The second phase, called the “countdown,” mirrors the setup but lasts for thirteen candles. After these thirteen candles, there is a chance that another price reversal has occurred.
Recently, XRP completed the TD Sequential setup, as depicted in the analyst’s shared chart displaying the cryptocurrency’s weekly price. The setup formed with red candles, indicating the struggles XRP has faced in recent times.
Based on historical patterns, the completion of this TD Sequential setup suggests that XRP may have reached a probable bottom. The analyst proposes that XRP is “poised for an upswing lasting one to four weeks.”
The year did not commence favorably for XRP, as it witnessed a significant downward movement from which it has struggled to recover. The price of XRP has continued to decline, aligned with its poor start in 2024.
The accompanying chart illustrates XRP’s performance over the past three months. Although a brief relief rally unfolded following the approval of the Bitcoin spot ETF, it quickly dissipated as investors seized the opportunity to sell the news.
After the prevailing downtrend, the cryptocurrency currently hovers around the $0.50 threshold, exhibiting an almost 18% decline year-to-date. With the emergence of the buy signal on the TD Sequential, investors and XRP enthusiasts eagerly await the projected uptrend.