An analyst has explained that XRP has just witnessed a buy signal on the 3-day chart. The last time this pattern appeared, the asset’s price rose by almost 60%.
XRP recently formed a TD Sequential Buy setup
In a new after on X, analyst Ali pointed out that the XRP 3-day chart is currently showing a TD Sequential buy signal. The “Tom Demark (TD) Sequential” is an indicator in technical analysis that is generally used for locating points of likely reversal in the price of an asset.
This statistic consists of two phases: the installation and the countdown. In the first case, candles of the same polarity are counted up to nine, and after the ninth candle it can be assumed that the asset has reached a likely point of change in direction.
If the candles leading to the completion of the setup were green, then the price could have reached a top and a reversal to the downside could have occurred. Likewise, red candles can suggest a bottom formation.
Once installation is complete, the 13 candle countdown will begin. At the end of these thirteen candles, it can be assumed that another likely top or bottom has been hit by the price.
XRP recently ended the former type phase for the TD Sequential at its 3-day price, as evidenced by the chart shared by the analyst below:
The pattern that has recently formed in the 3-day price of the cryptocurrency | Source: @ali_charts on X
As visible in the chart, the TD Sequential setup recently completed with nine red candles for XRP. This obviously indicates that a bottom has now formed for the asset.
“The TD Sequential has proven its accuracy in predicting the movements of XRP on the 3-day chart,” says Ali. “Currently, it is showing a buy signal, indicating that XRP is gearing up for a recovery.”
In the chart, the analyst has also highlighted what happened the last two times such a buying setup appeared for the asset. It appears that the last bullish TD Sequential signal led to a nearly 60% rally for the asset, while the signal before that resulted in a price increase of over 111%.
If a similar increase occurs from the cryptocurrency’s current spot price, the asset will rise to the $0.81 mark. At the same time, a rally on the scale of the latter would mean a break above the $1 level.
Obviously, any price increase resulting from the latest TD Sequential buying lineup won’t necessarily be comparable to any of these increases. Nevertheless, these rallies still provide perspective on how powerful the signal for the cryptocurrency has proven to be in recent months.
XRP price
XRP has continued its decline over the past day as the price has fallen 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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