XRP has started to show signs of a potential rebound after several weeks of underperformance, as a notable technical indicator suggests a possible shift in momentum. Despite this, technical analysts caution that buyers still need to confirm a stronger trend reversal before any sustainable rally can develop.
TD Sequential buy signal raises hopes
At the time of writing, XRP is priced at $1.3139, reflecting a daily increase of 0.36% according to TradingView data. Attention recently focused on an analysis by Ali Charts, a prominent crypto analyst, who highlighted the appearance of a buy signal from the TD Sequential indicator on XRP’s three-day chart.
The TD Sequential is a technical analysis tool used to identify potential points of trend exhaustion and possible price reversals. According to Ali Charts, three previous buy signals from this indicator on XRP were followed by rebounds of 31%, 24%, and 18% respectively. Referencing these occurrences, the analyst indicated that the latest signal could also be a precursor to recovery, but emphasized that certain price levels need to hold to support this scenario.
Mini dictionary: TD Sequential is a popular technical indicator created by Tom DeMark that aims to assess when a trend in price is likely to exhaust itself and potentially reverse. It is widely used among traders for spotting entry and exit points in volatile markets.
Ali Charts emphasized that $1.25 is the key level for bullish momentum. If XRP stays above this threshold, he sees scope for a move toward $1.40. Conversely, dropping below $1.25 could expose the market to further losses, with $0.98 cited as a downside risk.
XRP has flashed a TD Sequential buy signal on its three-day chart. Historical data shows rebounds of up to 31% after similar signals, but sustaining a price above $1.25 remains crucial to strengthen the recovery scenario.
Technical outlook remains mixed
TradingView’s daily chart shows that XRP continues to trade below all four key exponential moving averages: the 20-day EMA at $1.3419, the 50-day EMA at $1.3607, the 100-day EMA at $1.3335, and the 200-day EMA at $1.3710. Remaining under these averages keeps the broader trend under pressure, with the $1.3335–$1.3710 range acting as major resistance levels for any bullish move.
On momentum indicators, the Moving Average Convergence Divergence (MACD) histogram is close to zero at approximately -0.0004, suggesting weakening bearish pressure. However, the MACD line lies below its signal line, so a definitive bullish crossover has not yet been confirmed.
This combination of mixed indicators suggests that, while the TD Sequential buy signal is promising, XRP’s price needs further confirmation before investors can expect a sustained upward trend.
| Support Level | Resistance Levels (EMAs) | MACD Histogram |
|---|---|---|
| $1.25 | $1.3335 – $1.3710 | Approximately -0.0004 |
Market data and trading volumes
Recent price action indicates that XRP closed at $1.37 on October 21 and declined to $1.31 by October 26, representing a 4.4% decrease according to CoinGecko. Over the same period, daily trading volumes dropped from about $1.98 billion to nearly $996.8 million.
Open interest in XRP futures, as tracked by CoinGlass, remains below the highs recorded in late September, implying a reduction in leveraged activity from traders. This drop may signal a more cautious market or reduced speculative risk at current price levels.
Key levels to watch
Analysts point to $1.25 as the main support zone for XRP. A sustained move above this level, along with the successful recapture of the key EMAs, would strengthen the case for a recovery toward $1.40. If the price instead slips below $1.25, downside risk increases, with the potential for $0.98 to be tested in the near term.
Given ongoing market volatility, traders are encouraged to closely monitor price movements, trading volumes, and upcoming catalysts before making decisions in the XRP market.
The current buy signal offers a possible setup for recovery, but confirmation of a trend reversal will require bullish momentum to re-establish itself above multiple resistance levels.
