Analyst Says XRP May Be Set For a Brief Pullback. Here’s why

In a recent post on social media, crypto analyst Ali Martinez took to X (formerly Twitter) to highlight a possible pullback for XRP, citing the TD Sequential indicator on the 4-hour chart.

Ali’s tweet read: “$XRP may be set for a brief pullback, as the TD Sequential indicator flashes a sell signal on the 4-hour chart after a 22% price surge!”

$XRP may be set for a brief pullback, as the TD Sequential indicator flashes a sell signal on the 4-hour chart after a 22% price surge! pic.twitter.com/RU7fiiWV5O

— Ali (@ali_charts) February 15, 2025

The TD Sequential indicator is a widely used technical analysis tool developed by Tom DeMark. It helps traders identify potential reversal points by counting a series of consecutive candles in an uptrend or downtrend.

In this case, the indicator flashed a sell signal after XRP experienced a significant 22% increase in price. This suggests that short-term traders may look to take profits, potentially leading to a retracement in XRP’s price.

Market Reactions and Counterarguments

Ali’s tweet sparked a discussion among traders and analysts. One X user, Salman Clay, responded with a different perspective, suggesting that broader market indicators still point to further bullish potential.

He wrote: “Maybe but 1D macd and rsi are pretty well placed for expansion. The key issue that would support your theory is that it’s the weekend and pullbacks happen often on the weekend.”

Clay’s argument is based on the daily MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index), which indicate the potential for continued upward momentum.

The MACD is a trend-following momentum indicator that signals shifts in market sentiment, while the RSI measures whether an asset is overbought or oversold. If both indicators remain in favorable positions, XRP may still have room for further gains despite TD Sequential’s sell signal.

However, Clay also acknowledges a key factor that supports Ali’s view—a common occurrence of pullbacks during weekends. Historically, weekends often bring lower trading volume, increasing price volatility. In such conditions, short-term profit-taking could amplify downward price movements.

XRP Key Technical Levels to Watch

Given the conflicting signals, traders will likely monitor key price levels closely. If XRP experiences a pullback, support levels around $2.70 and $2.60 could be where buyers step in. Conversely, if XRP continues its uptrend despite the TD Sequential signal, resistance near $2.90 and $3.00 may become important levels to break.

Traders will also be watching for confirmation from other technical indicators. A breakdown in the RSI or a bearish crossover in the MACD could add credibility to the sell signal, while continued strength in momentum indicators may override the bearish outlook.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.