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XRP's TD Sequential Flashes Bearish Signal After 336% Surge

Coin WorldWednesday, Feb 26, 2025 10:42 am ET
1min read

The XRP td Sequential indicator on the 2-week timeframe has been accurate for three years, and data suggests it now sends bearish signals. XRP has had a turbulent month in February after posting remarkable gains from November 2024 to January 2025. Notably, within this period, the asset enjoyed an impressive 336% increase, reclaiming the psychologically important levels at $1, $2 and $3 along the way.

However, with a 26.67% drop this month, February 2025, XRP has relinquished some of the recent gains. The asset has so far forfeited the $3 price mark, but the bulls are now mounting a potent defense, effectively looking to hedge against a crash below $2.

Some analysts have insisted that there is no cause for concern as long as XRP holds $2. Nonetheless, the latest analysis from market watcher Ali Martinez suggests that the XRP correction might not yet be over. Taking to X, the market commentator called attention to the TD Sequential indicator, a reliable analytical tool that detects potential trend reversals by analyzing price bar sequences to signal overbought or oversold conditions.

According to Ali Martinez, this indicator has been accurate for XRP in the 2-week timeframe since 2022. Particularly, in mid-2022, after the market downtrend from the Terra implosion, the TD Sequential flashed a buy signal for XRP. Shortly after this signal, XRP surged to a peak of $0.5582 in September 2022, marking a 71.89% increase.

Meanwhile, in July 2023, after XRP’s run to $0.93 on the back of the summary judgment in the Ripple v. SEC case, the indicator flashed a sell signal. In response, XRP collapsed in the weeks that followed, dropping 57% to a low of $0.43 by August 2023.

Now, the TD Sequential has again displayed a sell signal. The use of 1 indicates the start of a new bearish Setup phase. This suggests that the downtrend may continue, as the indicator has begun counting a new sequence of qualifying price bars in the same direction.

As a result, XRP

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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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