A crypto analyst pointed out how Tom Demark (TD) Sequential recently highlighted a buy signal for XRP, which could be a sign that a short-term reversal is coming.
TD Sequential Has Created a Bullish Setup for XRP
In the new post on X, expert Ali Martinez said about a TD Sequential the signal that has appeared on the 4-hour price of XRP. TD Sequential here means signal from technical analysis (TA) which is often used to observe changes in the stock price. It involves two parts, but in the context of the current discussion, the first part called setup is important.
During setup, TD Sequential counts up to nine candles of the same color. When the nine candles enter, the indicator signals a possible reversal. Naturally, the signal is bullish one if the setup ended after nine red candles while it is bearish one if the green candles were involved.
Now, here is a chart shared by Martinez that shows the TD Sequential setup that has appeared on the 4-hour price of XRP:
As shown in the image above, the price drop has led to the launch of the TD Sequential. Therefore, the indicator is highlighting the XRP buy signal. “I think a $1.35 rebound will come before we can continue,” Martinez said. Now it is seen how much the price of the stock will grow in the coming days, thanks to this indicator.
In other news, recent buyers of XRP are currently experiencing growing pains, as blockchain analytics firm Santiment has highlighted in X. post. The metric cited by Santiment is Market Value to Guaranteed Value (MVRV)which is a well-known indicator that monitors the loss of profits of investors or addresses throughout the Internet.
As the chart below shared by the analytics company shows, the 30-day trend of this metric, which tracks how consumers have been losing profits over the past 30 days, has entered deep territory recently.
Following the significant decline of the token, many buyers of XRP since last month have an unexpected loss of more than 47%, which is the lowest that the token has been since December 2020. “Historically, MVRV’s (average trade returns) are always close to 0%, which makes this time the cheapest time for XRP.”
The price of XRP
XRP has been consolidating recently with its price trading at the $1.33 level.
