26 February 2024
An analyst has explained that the XRP price has formed a buy signal that may lead to the cryptocurrency surging up to this target.
XRP Weekly Price Has Formed A TD Sequential Buy Setup
In a new post on X, analyst Ali discussed how the weekly price of XRP has recently shown a TD Sequential buy signal. The “Tom Demark (TD) Sequential” refers to an indicator in technical analysis that’s generally used for pinpointing locations of probable tops and bottoms for any commodity’s price.
The TD Sequential has two phases. In the first phase, called the setup, candles of the same polarity are counted up to nine. Once these nine candles are in, the indicator gives a signal of reversal for the asset. Naturally, the direction in which such a reversal would go depends on the type of candles that lead to the setup’s completion.
If green candles resulted in the setup’s formation (that is, the prevailing trend was to the upside), the price could be assumed to have run into a probable top. Similarly, red candles would imply a likely bottom may have now been hit by the asset.
The second phase, the countdown, begins once the setup is done. It works very much like the setup, except for the fact that it lasts for thirteen candles instead of nine. Once the countdown is also over, the price could be considered to have attained another point of probable reversal. This time around, the XRP 7-day price has formed a TD Sequential pattern similar to the former.
Below is the chart shared by Ali that shows this setup that has appeared for the asset:
As displayed in the graph, the XRP weekly price finished the TD Sequential setup with nine red candles recently. This would imply that the indicator has given a buy signal for the coin.
It would also appear that the indicator’s effect might already be in action, as the cryptocurrency has been heading up overall since it completed the buy setup.
“If XRP manages a sustained weekly close above $0.57, it could be the catalyst for a push toward $0.63 or even higher, reaching $0.65,” says the analyst. From the current price of the asset, such a potential run towards $0.65 would mean an increase of more than 22% for the coin.
XRP Price
XRP has had a poor last week as the asset is down 5% over the period, with its price dropping to the $0.53 level. This means that the asset is still far from the $0.57 threshold the analyst pointed out as a possible bullish catalyst.
The chart below displays how the cryptocurrency has performed recently: