Analyst Identifies Buy Signal with Indicator On XRP 3-Day Chart

XRP has recorded significant price declines over the past few weeks. The Ripple coin has lost 11.3% of its price in the last seven days, now trading at $0.51 with a 4.9% 24-hour decline.

Amid this bearish outlook, crypto analyst and chartist Ali Martinez has identified a buy signal on the XRP 3-day Chart using the TD sequential indicator.

Despite the increased sell-off, Martinez sees the ongoing price decline as an accumulation phase, believing Ripple will rebound soon. 

Ali Martinez Remains Bullish on XRP

#Ripple Market Insight: The TD Sequential has proven its accuracy in forecasting $XRP’s movements on the 3-day chart. Currently, it’s showing a buy signal, suggesting that #XRP could be gearing up for a rebound. pic.twitter.com/IqfjM0LksJ

— Ali (@ali_charts) January 22, 2024

Ali Martinez remains optimistic about XRP’s chances to recover from its slump. He noted that the TD sequential indicator has proven accurate in predicting XRP’s movements on the 3-day chart. 

Also, the TDZ sequential indicator identifies possible trend reversals and continuation patterns dependent on the sequence of candlesticks. According to Martinez, the indicator now displays a buy signal, which implies that Ripple could be close to a price recovery. 

This prediction tallies with a previous forecast by the same analyst earlier this month. In the forecast, Martinez said XRP’s price action since June 2022 appears to be in an ascending parallel channel. 

He said Ripple could rise to the channel’s middle or upper boundaries, $0.0 and $1.10, respectively, if this pattern persists.

From this perspective, the governing pattern behind #XRP price action since June 2022 appears to be an ascending parallel channel.

If this pattern continues, $XRP could make its way toward the channel’s middle or upper boundaries, which currently sit at $0.80 and $1.10,… pic.twitter.com/kCKHEFZQWe

— Ali (@ali_charts) January 8, 2024

The analyst identifies a buy market for XRP based on its possible rise in the coming weeks. However, the retracement in the broader crypto market could create mixed signals for XRP investors, but investor sentiment remains neutral today. 

But there’s still some good news for the XRP community. Crypto exchange Gemini announced plans to offer XRP perpetual contracts to the public soon. This perpetual contract will allow traders to speculate on the future price of XRP without concerns about an expiration date.

If this comes to fruition, XRP could witness a surge in demand, resulting in a price uptrend. Interestingly, large investors have already started bagging XRP. Whale Alert noted the movement of some XRP tokens by some whales as they enter an accumulation phase. 

XRP Under Bearish Pressure; Will the $0.50 Support Hold?

XRP has formed three consecutive red candles on the daily chart between January 21 and 23. It faces stiff resistance at the $0.53 price level today, with the bears attempting to force a decline below $0.50.

Ripple remains below the median band of the Donchian Channel (DC), a bearish signal hinting at a further decline. 

Additionally, the Relative Strength Index (RSI), now in the oversold region, with a value of 29.66, confirms that sellers are dominant. Despite the bearish signals, Ripple is poised for a reversal in the coming days.

Moreover, the long lower wick on today’s candle suggests that the buyers are still active and trying to force a rally at $0.50. Since Ripple is already in the oversold region, it will likely rebound at the $0.50 support to rally in the coming days.

However, if the $0.50 support level fails to hold, further price decline is possible. 

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