XRP Price Faces Potential Drop: Leading KOL Warns of Imminent Correction with TD Sequential Sell Signal!

In the cryptocurrency arena, where fluctuation is commonplace, market signs have a habit of alerting traders with an effective preview of probable price direction. TD Sequential indicator has proved to be particularly popular as it has been regarded for its prowess in anticipating price direction. Technical analysts utilize this indicator because it boasts a terrific track record and has more than once offered effective signals, for example, registering a sell indication on the 2-week time frame chart on XRP Price (Ripple) in recent times to signal probable correction in prices soon.

What is the TD Sequential Indicator?

The TD Sequential was devised by trader Tom DeMark and is a technical indicator employed for the purpose of anticipating possible reversals in a market’s price trend. The TD Sequential includes two main parts: the TD Setup and the TD Countdown.

The Setup phase is a series of successive price bars closing higher or lower than the previous one, and the Countdown phase identifies extreme market conditions that could signal a reversal. The sell and buy signals of the TD Sequential are mostly considered a positive indication of market changes, especially when they are in accordance with other indicators or trends.

XRP Strong Past Correlation with TD Sequential

XRP, the cryptocurrency of the native Ripple network, has been since 2022 extremely responsive to the signals that the TD Sequential indicator provides. All traders and analysts have made use of it to predict price action in XRP, and it has exhibited a very high level of performance in predicting price directions. This indicator’s track record has gained it favor as a useful tool to utilize within the unpredictable field of cryptocurrency.

TD Sequential a Sell Signal for XRP

Now, after months of bullish price movement and volatility, the TD Sequential has once again flashed a sell signal on the 2-week chart for XRP. This is a noteworthy development because the 2-week chart can be considered a medium-to-long-term chart, which implies that the sell signal can be taken seriously by XRP investors and traders.

What does this sell signal tell us about XRP’s future price? In short, it suggests a pullback or correction of the price of XRP is imminent. Historically, when TD Sequential provides a sell signal, the price usually has a temporary decline before being supported at a lower level.

For XRP, it suggests the digital currency might be heading into a new cycle where the price could decline before settling and potentially resuming its long-term trend upward.

Why A XRP Price Correction Would Be Possible

There could be a number of reasons behind the potential correction in the price of XRP: Overbought Conditions: The recent rally in the price of XRP has probably taken the asset to the overbought levels, where prices are above their actual market value. This tends to lead to profit-taking and selling off, and thus a correction in price.

Broader Market Sentiment: The crypto market is famously volatile, and the price correction in Ripple (XRP) may not be isolated. Bitcoin (BTC), Ethereum (ETH), and other leading altcoins are often correlated, and the overall downturn in the market may drive the selling in XRP.

Investor Sentiment: TD Sequential indicator captures the market sentiment. As the investor gets cautious because of the sell signal and acts accordingly, the price may fall further, thus continuing the correction.

What Does This Mean for XRP Price Traders?

For day traders seeking to capitalize on short-term movements of the market, TD Sequential sell can serve as an opportunity to book profits or short XRP expecting the bear trend. But for long-term holders, it would mean a health correction offering an opportunity to buy, especially if XRP continues with the upmove following the correction.

It is essential to recall that no indicator is perfect. While the TD Sequential has proven itself reliable in anticipating market direction, it isn’t foolproof. Traders and investors must always pay attention to other variables—market news, sentiment, and fundamental developments—before making trading decisions.

Also to note Grayscale’s XRP ETF is now under SEC review with a critical October deadline. This move could significantly impact XRP’s market trajectory, especially as regulatory scrutiny on cryptocurrencies continues to intensify

Conclusion on XRP Price

The flashing of the sell signal on XRP’s 2-week chart from the TD Sequential indicator provides an additional layer of warning for investors and traders. With a potential correction in the air, market participants need to be on their toes and change their strategies accordingly.

Whether this signal results in a major drop or is just a short-term pullback is yet to be determined, but XRP traders will be watching the market closely for updates.

As always, the key to trading the cryptocurrency market lies in being current, considering a variety of indicators, and acting promptly based on an equalized strategy.

Source:

The TD Sequential indicator has been highly accurate in predicting $XRP price direction since 2022. It now flashes a sell signal on the 2-weeks chart, suggesting an impending correction. pic.twitter.com/K4DaBDUihQ

— Ali (@ali_charts) February 26, 2025