Technical Indicators Suggest Potential Reversals, But Confirmation Awaits
XRP experienced a 9.5% decline as the TD Sequential indicator presented a weekly buy signal, suggesting a potential fading of the bearish trend. Concurrently, Ethereum displayed a bearish setup on its 12-hour chart, leading traders to closely watch for possible reversals in both cryptocurrencies.
The Tom Demark (TD) Sequential indicator, a tool used to identify potential reversal points in asset prices, generated a buy signal on XRP’s weekly chart, according to cryptocurrency analyst Ali Martinez. This signal appeared as XRP's price saw a decline, following a significant drop in the previous trading day.
The TD Sequential indicator operates in two phases: setup and countdown. During the setup phase, it counts candles of the same polarity up to nine. Upon completion of nine candles, it generates a reversal signal. This signal is considered bullish when preceded by red candles and bearish when preceded by green candles. The countdown phase then counts up to thirteen candles, after which the asset may experience trend exhaustion and a potential reversal.
Ethereum's Bearish Signal and Market Watch
Ethereum also registered a TD Sequential setup, according to Martinez. The digital asset’s 12-hour chart completed a setup with nine green candles on Saturday, generating a bearish signal. Following the emergence of this signal, Ethereum’s price declined, erasing recent recovery gains.
Both the TD Sequential signals for XRP and Ethereum remain unconfirmed. Market participants are actively monitoring whether the suggested reversals will materialize or if further bearish price action will continue for these cryptocurrencies.