The cryptocurrency market is buzzing with a recent analysis by an expert, suggesting that it might be the right time to invest in XRP. This conclusion is based on the Tom Demark (TD) Sequential indicator, which has signalled a buy on the XRP hourly price chart.
In a recent post, crypto analyst Ali Martinez explains how the TD Sequential indicator works. Primarily, it’s a technical analysis tool used to identify potential reversal points in an asset’s price. The entire process involves two phases: setup and countdown.
The setup phase involves the counting of either red or green candles (indicating price movement) up to nine. These candles don’t necessarily have to be sequential. Once the ninth candle appears on the chart, the TD Sequential signals a potential reversal. The countdown phase begins after the setup, where candles are counted up to thirteen. Upon completion, another potential turnaround point is assumed.
The direction of the price post-TD Sequential signal depends on the colour of the candle that completes the phase. Green candles usually imply a forthcoming correction, while red ones indicate a bullish reversal.
Recently, XRP completed the setup phase of the TD Sequential on its 1-hour price chart, as depicted by the chart shared by the analyst. The pattern shows a setup completion with nine red candles, suggesting that XRP’s price may have reached a bottom and a bullish reversal might be imminent.
However, as this buy signal has appeared on a short timeframe (1-hour), the resulting price surge may not be very significant. It’s also interesting to note that XRP isn’t the only cryptocurrency showing a bullish setup; Stellar (XLM) also recently completed a buy setup, according to Martinez.
Currently, XRP is trading around $2.67, down 1% over the past week.
