XRP News Today: XRP's Bullish TD Signal vs. ETH's Bearish Warning Highlight Crypto Market Tension

XRP plunged 9.5% on Dec. 2, 2025, as the Tom Demark (TD) Sequential indicator signaled a potential trend reversal on the cryptocurrency's weekly price chart, [according to technical analysis](https://www.newsbtc.com/xrp-news/xrp-crashes-9-5-but-td-sequential-buy-signal/) from industry observers. The indicator, widely used in market timing, completed a bearish setup of nine consecutive red candles, suggesting the downward momentum may be waning. The signal emerged amid broader market weakness, with XRP's price breaching below the $2.0 level after a sharp decline. Analysts are now watching whether this technical cue will trigger a reversal or if further bearish action is in play.

The TD Sequential operates in two phases: a setup and a countdown. The setup phase counts nine candles of the same polarity (red for bearish, green for bullish) to signal a potential reversal. [If the setup is completed with red candles](https://www.newsbtc.com/xrp-news/xrp-crashes-9-5-but-td-sequential-buy-signal/), the signal is bullish, indicating a possible end to a downtrend. The countdown phase then tracks thirteen additional candles to confirm exhaustion and a reversal. For XRP, the setup was completed on the weekly chart, with the signal appearing as the cryptocurrency's price stabilized near $2.0.

Ethereum (ETH) also showed a TD Sequential signal, albeit bearish. On Saturday, the 12-hour chart for ETH completed nine green candles, triggering a sell signal that coincided with a sharp price drop back to $2,750. This erased recent gains and [highlighted the indicator's dual role](https://crypto.news/xrp-drops-9-5-as-td-sequential-hints-trend-reversal/) in identifying both bullish and bearish inflection points across major crypto assets.

Historical performance of the TD Sequential has bolstered its credibility among traders. Since early 2023, the indicator has accurately captured key reversals in Solana (SOL), including major swing lows and tops. For XRP, past setups have often led to significant rallies. In December 2022, a similar signal preceded a 300% surge within four months, while a 2023 setup drove a 120% rebound. [These patterns have made the indicator](https://capwolf.com/xrp-drops-9-5-is-the-td-sequential-flashing-a-reversal/) a focal point for market participants seeking high-probability entries.

Despite the bullish signal for XRP, skepticism remains. The TD Sequential's predictions are unconfirmed until price action validates them. Analysts caution that the market could see one final leg lower before a reversal, particularly if Bitcoin (BTC) dominance continues to rise, drawing capital away from altcoins. Additionally, [the countdown phase for XRP has not yet begun](https://crypto.news/xrp-drops-9-5-as-td-sequential-hints-trend-reversal/), meaning the full signal's potential remains untested.

Market sentiment is currently in "extreme fear" territory, with on-chain metrics showing declining exchange balances as long-term holders accumulate. This aligns with historical patterns where capitulation-style price action precedes rebounds. However, traders emphasize the need for patience, as [the signal's validity hinges](https://capwolf.com/xrp-drops-9-5-is-the-td-sequential-flashing-a-reversal/) on holding key support levels, such as $1.88–$1.92. A weekly close below this range would invalidate the setup.

The TD Sequential's dual signals for XRP and ETH underscore the fragmented nature of the crypto market. While XRP's weekly chart suggests a potential bottoming process, Ethereum's shorter-term bearish signal highlights the risk-on/risk-off dynamics currently at play. Investors are advised to monitor both assets closely, as the indicator's accuracy in prior cycles could influence broader market sentiment.