After a punishing two-week sell-off that erased billions from its market capitalisation, XRP is exhibiting its first notable sign of a potential turnaround. A closely watched technical indicator, the Tom DeMark (TD) Sequential, has presented a compelling ‘buy’ signal, prompting investors and analysts to question whether the bottom is in and a significant recovery is on the horizon.
The Signal That Called the Top—And Now the Bottom?
The credibility of the latest TD Sequential signal is significantly bolstered by its recent performance. On August 10th, the same indicator flashed a clear ‘sell’ signal as XRP’s price peaked above $3,30. What followed was a textbook downtrend, validating the indicator’s warning. The price cascaded downwards over the next two weeks, bottoming out near $2,76 on August 19th.
Source: X@ali_charts
Now, the tables have turned. On August 22nd, after nine consecutive daily candles closed lower than the previous one, the TD Sequential printed a ‘9’ buy signal. In technical analysis, such a sequence often signifies trend exhaustion, suggesting that selling pressure is waning and buyers may be poised to retake control. At the time of the signal, XRP was trading at $2,8629, sparking immediate interest in a potential relief rally.
Market Context: An Industry-Wide Pullback
XRP’s decline was not an isolated event but part of a broader market contraction. Between August 15th and August 22nd, the total cryptocurrency market capitalisation fell from approximately $183,50 billion to $169,00 billion, a decline of over $14,5 billion. This widespread bearish sentiment saw most major digital assets printing a series of lower highs and lower lows.
Despite the market weakness, XRP appears to be carving out a line of defense. A closer look at the 4-hour chart reveals key technical developments:
| Indicator | Current Reading | Implication |
| Price Action | Support near $2,80 | Buyers are defending this psychological level. |
| MACD | Flattening at -0,0473 | Selling momentum is slowing, reflecting market indecision. |
| RSI | Hovering at 40,64 | Remains in bearish territory (below 50), but is no longer deeply oversold. |
This confluence of factors suggests that while the downtrend has not been decisively broken, the intense selling pressure has paused, creating an opportunity for a reversal.
Long-Term Outlook: Analysts Eye Ambitious Targets
While short-term charts paint a picture of cautious stabilization, some analysts are looking at the bigger picture with considerable optimism. One projection, based on a higher-low formation following previous retracements, sets a long-term price target of $10 for XRP by 2026. This bullish forecast hinges on the asset’s ability to maintain its defense of key support levels established earlier in the year.
For now, traders’ eyes are fixed on the immediate price action. The TD Sequential ‘buy’ signal has provided the catalyst. The critical question is whether sufficient buying volume will follow to validate the signal and fuel a sustained move upwards. The coming trading sessions will be crucial in determining if this is a true turning point for XRP or merely a temporary reprieve.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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