XRP continues to lag behind the rest of the market after a brief glimmer of hope that has brought prices to current levels by the end of July. will outweigh Bitcoin and Ethereum, then a sell setup that is activated on the daily timeframe could cause it to drop in price.
XRP is paralyzed
Throughout the past month, XRP has struggled to gain any sustained momentum as it fluctuated between $ 0.22 and $ 0.26. The upper boundary of this range is quite harsh, with every visit here denied.
One analyst believes XRP is paralyzed from a technical standpoint, with a lack of buying pressure not allowing it to match the dynamics seen by the synthetic cryptocurrency market.
He is currently looking to ease his long positions as soon as the cryptocurrency reaches the next key resistance level.
“This dumb thing moved 2% while everything moved 10%. I… hate this coin and want to sell the first resistance. Everything moves exponentially in comparison to XRP. It was paralyzed. ”
Sell setup of TD9 trigger on XRP daily chart
There are hundreds of technical analysis indicators available to analysts and traders – some are new and customized while others have been around for decades and built with financial market icons. .
One such tool is the TD Sequential indicator, one of the most accurate of all cryptocurrencies, TD Sequential stands for Tom DeMark’s name, TD Sequential usually has 2 components – TD Setup and TD Countdown. The first phase of TD Sequential starts with TD Setup and has a total of 9 counts (TD 9). After 9 counts, at that point the price will stop, either retrace or reverse exactly to that level. But that is also the point where TD Sequential begins a second phase called TD Countdown and is counted 13 times (TD 13). When the 13th count is completed, at that point the price will reverse or just a small recovery.
It has successfully cut some Bitcoin tops and bottoms and performs well in altcoins and traditional markets. The indicator offers a sell setup after a series of candlesticks closes in response to a set of specific requirements.
TD9 sell setup triggered on XRP / USD daily | Source: TradingView
Usually, the sell setup of TD9 comes after a series of bulls. In XRP, however, the gain is just enough to trigger TD9, but only at a low level.
Most of the price action in XRP / USD is sideways on both the daily and weekly charts. The lack of a powerful higher thrust has resulted in what is known as an “imperfect” setup.
Only when a higher level is established above 8 or 9 candles will the setup be considered “perfect”.
While there is enough gain in the daily price chart to trigger a sell setup, the weekly timeframe miniaturization shows how stagnant XRP has been trading.
There are currently a total of 6 weekly candles whose real body closes within the 6% range. Usually when sideways properties for a long time, a big decisive move will result.
XRP / USD weekly trading range | Source: TradingView
A strong move upwards will complete an inverse head-shoulder pattern on the weekly timeframe and begin to form an even larger right shoulder on the monthly timeframe.
For now, one thing getting in the way is the sell-daily TD 9 setup, which is most likely the start of a deeper correction. However, due to prolonged sideways and imperfect selling setup, higher gains cannot be ruled out.
Dislaimer: This article is for information purposes only, not investment advice. We are not responsible for your investment decisions.