An analyst has explained that XRP has just witnessed a buy signal on its 3-day chart. The last time the pattern appeared, the asset’s price rallied almost 60%.
XRP Has Recently Formed A TD Sequential Buy Setup
In a new post on X, analyst Ali pointed out how the XRP 3-day chart is showing a TD Sequential buy signal currently. The “Tom Demark (TD) Sequential” is an indicator in technical analysis that’s generally used for locating points of probable reversal for any asset’s price.
This metric is made up of two phases: the setup and countdown. In the former, candles of the same polarity are counted up to nine, and following the ninth candle, the asset can be assumed to have hit a likely point of change of direction.
If the candles leading up to the setup’s completion were green, then the price might have hit a top, and a reversal towards the downside may have occurred. Similarly, red candles can suggest a bottom formation.
Once the setup is finished, the 13-candles long countdown phase begins. At the end of these thirteen candles, another probable top or bottom can be assumed to have been hit by the price.
XRP recently finished the former type of phase for the TD Sequential on its 3-day price, as the chart shared by the analyst below shows:
The pattern that has recently formed in the 3-day price of the cryptocurrency | Source: @ali_charts on X
As is visible in the graph, the TD Sequential setup has been completed with nine red candles for XRP recently. Naturally, this suggests that a bottom may have now formed for the asset.
“The TD Sequential has proven its accuracy in forecasting XRP’s movements on the 3-day chart,” says Ali. “Currently, it’s showing a buy signal, suggesting that XRP could be gearing up for a rebound.”
In the chart, the analyst has also highlighted what happened the last two times such a buy setup appeared for the asset. It would appear that the last bullish TD Sequential signal led to a rally of almost 60% for the asset, while the signal before that one resulted in a price appreciation of more than 111%.
If a surge similar to the former happens from the current spot price of the cryptocurrency, the asset will rally towards the $0.81 mark. At the same time, a rally on the scale of the latter would mean a break beyond the $1 level.
Obviously, any price rise that may emerge from the latest TD Sequential buy setup doesn’t necessarily have to be similar to either of these surges. Nonetheless, these rallies still provide perspective on just how powerful the signal has proven to be for the cryptocurrency in the past few months.
XRP Price
XRP has extended its decline during the past day as its price has dropped 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, charts from TradingView.com
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Source: https://www.newsbtc.com/analysis/xrp/xrp-buy-signal-resulted-60-rally-gone-off/