Buy Crypto
XRP continues to lag behind the rest of the market after a short-lived glimmer of hope brought prices to current levels in late July. And while crypto analysts expect the fourth-ranked cryptocurrency to outperform Bitcoin and Ethereum eventually, a sell setup has triggered on daily timeframes that could send Ripple ripping lower.
TD 9 Sell Setup Triggers On Daily XRP Charts After Barely Any Upside
There are hundreds of technical analysis indicators available to analysts and traders – some are new and custom; while others have been around for decades and were built by financial market icons.
One such tool, the TD Sequential indicator, is among the most accurate across all of crypto, created by market timing wizard Thomas Demark.
Related Reading | XRP Up-Move To Leave Bitcoin And Tether Traders “Sidelined”
It has successfully sniped several Bitcoin tops and bottoms and works just as well in altcoins and traditional markets. The indicator gives a sell setup after a series of candle closes meeting a specific sequence of requirements.
XRPUSD Daily TD Sequential "TD 9" Sell Setup Triggered | Source: TradingView
Typically, a sell setup comes after a string of upside. In XRP, however, there’s been just enough upside to trigger a TD 9 sell setup, but only barely.
Most of the price action in XRPUSD has been sideways on both the daily and weekly charts. The lack of a strong push higher has resulted in what is referred to as an “imperfect” setup.
Only when a higher high is set on the 8 or 9 candles, is the setup considered “perfected.”
Weekly Ripple Charts Shows A Slow Trickle Of Sideways Trading Range
Although there’s enough upside in daily price charts to trigger the sell setup, zooming out to weekly timeframes shows just how stagnant XRP has been trading.
There have now been a total of six weekly candles where the body of the candle closed within a 6% range. Typically, when assets trade sideways for an extended period of time, a large, decisive move results.
XRPUSD Weekly Tightening Trading Range | Source: TradingView
A strong move to the upside would complete an inverse head and shoulders pattern on weekly timeframes, and begin forming an even larger right shoulder on monthly timeframes as well.
Related Reading | XRP: Three Heads Are Better Than One, But Could Mean No New ATH Until 2023
The one thing standing in the way, for now, is this TD 9 sell setup on the daily, which could very well be the start of a deeper correction. Due to the extended sideways, and imperfect sell setup, however, a move higher cannot be ruled out.
Featured image from Deposit Photos, Chats from TradingView
