XRP Flashes TD Sequential Buy Signal, Analyst Eyes Rebound
Analyst Ali Martinez has identified a TD Sequential buy signal on XRP's 4-hour chart, suggesting a potential short-term rebound toward $1.35. Simultaneously, on-chain data from Santiment reveals that recent XRP buyers are experiencing losses exceeding 47%, indicating extreme market pessimism and potential undervaluation.
The TD Sequential signal represents a technical reversal indicator based on counting consecutive candles of the same color. When nine red candles form during a downtrend, the setup completes and theoretically signals exhaustion of selling pressure. Martinez's identification of this pattern on XRP's 4-hour timeframe follows a notable price decline, positioning the asset for potential mean reversion. The suggested $1.35 target represents a modest recovery point rather than a dramatic reversal.
The complementary on-chain analysis from Santiment provides meaningful context for this technical setup. The 30-day MVRV ratio dropping to its lowest level since December 2020—with average XRP buyers down 47%—historically precedes market bottoms. This metric's extreme negative reading suggests capitulation among recent market participants, aligning with the behavioral patterns that often precede reversals. The analytics firm explicitly noted that MVRV ratios historically regress toward zero, indicating the current positioning may represent genuine undervaluation rather than fundamental weakness.
These signals create an asymmetric risk-reward scenario for investors. The technical setup indicates near-term recovery potential, while the on-chain sentiment data suggests panic selling has reached unsustainable extremes. However, the signals differ in their scope: the TD Sequential targets a modest bounce to $1.35, while the MVRV analysis suggests broader recovery potential. XRP's consolidation near $1.33 provides a defined trading range for observing whether technical and sentiment indicators align with price action in coming days.
- →TD Sequential buy signal on XRP's 4-hour chart suggests potential rebound toward $1.35
- →Recent XRP buyers hold 47% unrealized losses, the worst since December 2020
- →Extreme negative MVRV readings historically correlate with market bottoms and undervaluation zones
- →Technical and on-chain sentiment indicators align, suggesting convergence toward recovery
- →XRP's consolidation near $1.33 provides clear levels to monitor for signal confirmation