A prominent cryptocurrency analyst has identified a technical indicator on XRP's biweekly chart that historically signals price reversals.
Crypto analyst Ali Martinez highlighted the formation of a Tom DeMark (TD) Sequential signal in XRP's price chart. The indicator has appeared on the two-week timeframe, potentially signaling a downward price movement ahead. Martinez shared his findings in a recent post on social media platform X.
The TD Sequential is a technical analysis tool used to identify possible reversal points in asset prices. It operates through two distinct phases: setup and countdown.
During the setup phase, the indicator counts nine candles of the same color, which don't necessarily need to appear consecutively. The completion of this nine-candle series suggests the asset may be approaching a potential turning point in its price action.
"The TD Sequential indicator has been highly accurate in predicting XRP price direction since 2022," Martinez noted. The analyst's chart showed several previous instances where the indicator successfully anticipated XRP's price movements over the past two years.
The current signal formed with green candles on XRP's chart. This pattern typically suggests the cryptocurrency could be facing a reversal to the downside. Price action since the signal's formation appears to confirm this bearish outlook, as XRP has already begun declining.
In a separate analysis posted earlier, Martinez warned that XRP was threatening to break below an Ascending Channel pattern. This technical formation occurs when an asset's price consolidates upward between two parallel, upward-sloping trendlines. Breaks below the lower boundary of such patterns often precede significant price declines.
Martinez has set a potential price target of $1.65 for XRP if the correction continues. Whether the cryptocurrency's price will fall that far remains to be seen.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.