XRP really didn’t have the best of years in 2019. The third-largest cryptocurrency by market capitalization fell by 50% against the U.S. dollar and even more against Bitcoin (BTC), losing half of its value in 12 months while BTC gained 95% within that same time period.
Despite this decisively bearish price action, the weekly chart of XRP, the second-largest altcoin, just printed an extremely bullish signal after weeks upon weeks of a downtrend.
Although it may not be a decisive sign of a macro reversal to a parabolic uptrend, it is a positive sign for investors in the cryptocurrency.
XRP Price Prints Key Bullish Signal
According to a Telegram channel tracking the Tom Demark Sequential, better known as the TD Sequential indicator, the XRP against the U.S. dollar chart just printed a “buy 9” candle after months upon months of falling prices.
As an aside: the TD Sequential is a time-based indicator created by a special advisor to Point 72 Asset Management and a CEO of a market research and analytics firm. Per a technical analysis site, “When the 9 count is completed, it is at that point, a price pause, price pullback, or reversal is likely.”
Although it isn’t clear how accurate the TD Sequential is for XRP, the indicator has been especially accurate in calling macro reversals for Bitcoin.
Per Demark himself, 13 candles marked the top of Bitcoin’s bull run to $20,000 in December 2017, the bottom at $3,150 in December 2018, and the local top at $14,000 just last July.
It isn’t only the TD Sequential 9 candle that has analysts optimistic about XRP from a longer-term perspective.
DonAlt, another popular crypto analyst and trader, noted in a recent tweet that the crypto could see significantly further momentum, pointing to a chart showing a potential target of $0.50, which would mark a roughly 140% rally from its current prices.
Also, Michael Van De Poppe, a contributor to CoinTelegraph and a trader at the Amsterdam Stock Exchange, recently noted that XRP’s current price action is very similar to the bottoming pattern seen in December of 2015 and January of 2016, which was followed by a massive spike to pre-crash levels. He added that massive downtrends on altcoin charts are on the verge of being “broken down,” setting the stage for strong reversals to the upside.
He said should the current trend play out as it did in the previous cycle, meaning XRP will need to hold the $0.14-$0.17 range, it could surge as high as $0.473.