XRP, the controversial token affiliated with blockchain firm Ripple, is experiencing a bullish signal, according to the TD Sequential indicator.
As per Ali, a popular cryptocurrency analyst on Twitter, TD Sequential presented a buying signal on XRP's three-day chart.
This could potentially indicate an upcoming positive price movement, but the digital asset must remain above a certain price point to sustain the potential uptrend.
The TD Sequential is a technical analysis tool used by traders to identify potential price exhaustion and market reversals. It involves a series of price calculations based on historical data and time series to predict whether the price of an asset is likely to continue in its current trend or reverse.
A buying signal on this indicator suggests that there could be a reversal from a downward trend to an upward trend. However, like all trading indicators, it's not foolproof and should be used in combination with other tools for a comprehensive trading strategy.Ali emphasized that for the predicted uptrend to materialize, XRP must hold above $0.45. If this is sustained, it could surge to $0.51. Even more notably, slicing through the $0.51 resistance level might trigger a breakout pushing the price up to $0.60.
At the time of writing, XRP's price is hovering around $0.47, which is within the specified range but needs to stay above the crucial $0.45 level to avoid a potential bearish correction.
According to data from CoinGecko, XRP has a market cap of roughly $24.98 billion, placing it among the top cryptocurrencies by market capitalization.
The 24-hour trading volume stands at a robust $662 million, reflecting high levels of activity and interest in the asset.