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XRP may be facing a short-term correction after a technical indicator known for accurately predicting past market reversals has flashed a new sell signal. According to popular crypto analyst Ali Martinez, the Tom Demark (TD) Sequential indicator — a widely used tool for identifying potential turning points — has once again appeared on XRP’s daily chart.
TD Sequential Suggests a Possible XRP Pullback
In a post shared on X (formerly Twitter), Martinez noted that the TD Sequential setup has been triggered for XRP, marking nine consecutive green candles on the daily chart. Historically, this pattern signals that the current bullish trend may be running out of momentum, often preceding a local price reversal.
The TD Sequential indicator operates in two main phases:
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Setup Phase – Counts nine consecutive candles of the same color, indicating a potential exhaustion in the ongoing trend.
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Countdown Phase – Follows the setup with a 13-candle sequence that typically signals another top or bottom formation.
When nine green candles complete the setup phase, it typically warns that the bullish run is overextended — potentially signaling a bearish reversal. Conversely, nine red candles indicate bearish exhaustion and a possible bullish rebound.
Recent History Adds Weight to the Signal
Martinez’s analysis shows that the TD Sequential has been notably accurate in tracking XRP’s recent price reversals over the last three months. Each time the setup completed — whether bullish or bearish — XRP’s price experienced a noticeable change in direction shortly after.
The chart shared by Martinez highlights that the indicator’s sell signals have often coincided with local tops in XRP’s price action. The latest formation, showing nine consecutive green candles, has therefore raised the possibility of a near-term pullback.
“XRP has flashed a sell signal on its daily chart,” Martinez wrote, noting that the pattern has “historically preceded corrective phases.”
Wider Market Correlation Strengthens the Case
Interestingly, XRP is not the only asset where the TD Sequential has proven reliable recently. Martinez pointed out that the same indicator successfully signaled reversals in Bitcoin (BTC) as well.
Earlier in the day, Bitcoin also registered a TD Sequential sell setup, and shortly afterward, its price began to retrace from recent highs. This correlation between Bitcoin and XRP could amplify the likelihood of a short-term market correction across the broader crypto sector.
In Martinez’s view, the consistent reliability of this indicator — particularly across major assets like BTC and XRP — adds weight to the current bearish signal. If the pattern repeats, XRP could face downward pressure in the coming sessions.
Technical Outlook: Key Levels to Watch
At the time of writing, XRP is trading near $2.68, having recovered from a recent low of around $2.55 earlier this month. Despite the strong upward movement, technical resistance near $2.75–$2.80 remains firm.
If the TD Sequential pattern holds true, XRP could face selling pressure around these resistance zones, potentially triggering a short-term dip toward the $2.55 or $2.45 support levels.
A sustained drop below $2.45 may extend the decline toward the $2.32 region — a level that previously served as a key accumulation zone during XRP’s last correction. On the upside, a break above $2.80 would invalidate the bearish setup, opening the door for another attempt at the $3.00 psychological barrier.
Analysts Remain Divided
While short-term indicators point to weakness, many analysts remain optimistic about XRP’s broader trend. On-chain data suggests that large holders (“whales”) continue to accumulate XRP, showing confidence in its long-term outlook.
Moreover, Ripple’s continued institutional partnerships — including collaborations in remittance and cross-border payments — are keeping investor sentiment stable. Market watchers believe that even if XRP undergoes a temporary pullback, the overall bullish structure remains intact above the $2.30 support region.
What’s Next for XRP?
If the TD Sequential’s historical accuracy continues, XRP may be due for a brief correction before attempting another upward move. Traders are closely monitoring price action around $2.55, which could serve as the next test of short-term market strength.
Meanwhile, investors are advised to watch Bitcoin’s price movements, as XRP often mirrors BTC’s momentum during broad market shifts.
Whether the latest TD Sequential signal leads to another precise reversal — as it has multiple times over the past quarter — remains to be seen. But with both Bitcoin and XRP flashing similar warnings, short-term caution may be warranted across the crypto market.
