XRP price may be preparing to break out of its slump after a brutal trading session. The TD Sequential indicator indicates we are close to a potential bullish reversal.
On the 4-hour chart, XRP has just flashed a buy. This could mean that the digital asset could soon record another upward swing.
Ripple comes in the wake of broader market volatility and a 3% drop in the value of XRP in the past day.
TD Sequential Indicator Signals Buy
The widely used technical analysis tool, the TD Sequential indicator, has signalled a buy signal on XRP price’s 4-hour chart.
This is an indicator widely known for signposting an end of a trend and sometimes even signposting reversals in price trends well ahead of time.
The current “9” buy signal, at the tail end of a downward trend, usually indicates a price rebound is inbound.
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The indicator is shown on the chart as a green arrow pointing at a particular candlestick where the buying opportunity could appear.
This setup often signals changes of direction. Thereby giving traders a push when attempting to anticipate a changing direction of the market.
As XRP consolidates within the $3.15 price range or below. The signal and the prospect of an upward move have emerged.
Despite the technically promising beginning, XRP has had a rough 24 hours, losing 3% of its value. XRP is now down 3.19% to $3.22 at the time of writing, having edged down.
However, the downturn is in step with weakness in broader markets, as limited trading and profit-taking punish prices.
Trading volume in XRP has seen a 29.22% drop in the past day. Trade volume in XRP has shrunk to $13.04 billion, suggesting declining market participation.
The traders’ caution is reflected in the current 7.02% volume-to-market-cap ratio. Yet XRP remains the third largest cryptocurrency, with a market capitalisation of $185.38 billion.
‘In terms of the fundamentals,’ XRP’s circulating supply stands at 57.56 billion tokens. This potentially points to a good shape despite the short term decline.
XRP Price Technical Analysis: Key Levels and Indicators
On a broader technical front, XRP looks attractive. Over the past week, the cryptocurrency has been moving steadily up a parallel ascending channel.
This pattern indicates an uptrend in which the price acts very controlled while bouncing between clearly defined support and resistance levels.
Yet, the recent pullback is taking XRP price to the channel’s lower boundary, which seems to have instigated talks of a breakdown.
Its volume-weighted momentum indicator, the Money Flow Index (MFI), is 58.11.
As far as readings go, this reading says buying pressure is only moderate and not overbought like it is at conditions that typically precede reversals.
TD Sequential further reinforces the probability that the TD Sequential signal may renew bullish momentum for traders.
XRP sees that key support has formed in the $3.15–$3.20 range. In recent sessions, this level has been employed as a price floor, soaking up selling pressure and serving as a base for recovery potential.
If there is a breach of this range, XRP price should find support at the critical level of $2.90 if there is a further correction.
The flip side of this zone would be a successful rebound that would preface a potential retest of key resistance levels around $3.30 and $3.40.
Source: https://www.thecoinrepublic.com/2025/01/18/a-bullish-reversal-for-xrp-price-td-signal-suggests-its-time-to-buy/