Cryptocurrency analyst highlighted how Tom Demark (TD) Sequential gave a buy signal for XRP after the recent pullback.

XRP has observed a sequential TD signal on its 4-hour chart

In the up-to-date one post on X, analyst Ali Martinez shared a TD Sequential signal that appeared in the 4-hour XRP price. “TD Sequential” here refers to a technical analysis (TA) indicator that is commonly used to pinpoint potential reversal spots in an asset’s price.

The indicator consists of two phases. In the first phase, called setting, candles of the same color are counted to nine. When these nine candles, which do not have to be consecutive, are printed on the chart, TD Sequential sends a reversal signal. Naturally, if the candles leading to the end of the setup were green, then the signal is bearish, while their red color indicates a possible bottom formation.

Once the setup is complete, the second phase, called the countdown, begins. This phase is very similar to the first, with the only difference being that it involves a total of thirteen candles instead of nine. Once the countdown ends, the price is assumed to have reached the next trend exhaustion point.

Here is a chart showing the TD Sequential signal that appeared recently for XRP on the 4-hour time frame:

As shown in the chart above, the TD Sequential setup has just emerged in the 4-hour XRP price. This signal came as the cryptocurrency fell more than 4% from a high of $1.45.

Since the candles involved were red, the completion of the setup suggests that a bullish reversal could occur for the asset in the compact term. “For me, this means that the local exhaustion is over and XRP is ready to rebound,” Martinez said.

The analyst noted that TD Sequential had recently correctly predicted trend changes in the token. One example can be seen in the chart; the high of $1.45 earlier in the week coincided with a sell signal on the indicator.

“I am looking for a move back towards the resistance at $1.45, with a secondary target of $1.80, once we get through the supply glut,” Martinez added. It now remains to be seen whether the signal will pay off for the cryptocurrency or if the downtrend will continue in the near future, invalidating the setup.

XRP price

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