XRP Flashes TD Sequential Buy Signal, Analyst Eyes Rebound
28 May 2026 · 09:00 UTC · NewsBTC RSS Feed · Original source
Read original at NewsBTC RSS Feed →
Summary
An analyst highlighted a TD Sequential technical analysis signal on XRP's 4-hour price chart indicating a potential bullish setup. The TD Sequential indicator counts candles of the same color and signals potential reversals when nine candles form. In this case, a downtrend led to the bullish setup, with the analyst predicting a rebound toward $1.35. On-chain analytics firm Santiment reported that recent XRP buyers face significant losses, with the 30-day MVRV ratio (Market Value to Realized Value) showing average unrealized losses exceeding 47% for buyers from the past month—the lowest level since December 2020. This extreme undervaluation historically precedes market reversals. XRP is currently trading around $1.33.
Why it matters
TD Sequential works through trader pattern recognition—followers may initiate buy positions, creating buying pressure through collective action. The supporting MVRV extreme undervaluation metric adds some fundamental credibility to the oversold thesis. Key mechanisms: (1) technical traders recognize and act on the pattern, (2) resulting buying volume creates upward pressure, (3) initial momentum attracts trend-following traders. Critical assumptions: active trader base follows this indicator, the pattern maintains predictive validity, and broader market conditions support reversal. Main uncertainties include whether this is a legitimate signal or false positive, whether enough volume materializes to move price substantially, macro sentiment direction, and support/resistance levels near $1.33. Bitcoin sees minimal spillover because single altcoin technical signals rarely drive broader market moves absent systemic catalysts. Time decay risk: signal relevance decreases as price action evolves beyond the setup pattern.
Expected impact
The TD Sequential technical indicator signal on XRP's 4-hour chart suggests a potential bullish reversal, with analyst predicting rebound toward $1.35. Supporting data shows extreme MVRV ratio (47% losses for recent buyers), indicating oversold conditions. Near-term XRP impact would be moderate, driven primarily by trader reactions to the technical signal. However, technical indicator reliability is debated and this signal lacks third-party confirmation. Bitcoin impact minimal since article focuses exclusively on XRP without broader macro analysis. Market effect would depend on whether sufficient buying volume materializes from traders following the signal and whether price action validates the pattern. Longer timeframes show declining impact probability as the signal loses relevance.