A sell setup has perfected after today’s push higher – could this be the end of XRP price recovery already?
XRP price and the rest of the cryptocurrency market were pumped over the weekend. However, the recent much-needed recovery of XRP may have ended when XRP is being set to sell on daily time frames. Will the sell signal lead to a reversal of the bear trend, or any downside simply to fall back to a more significant recovery ahead?
XRP/USD 4-Hour Chart | Source: TradingView
XRP price will have a 12% rally a week may be right, after setting up TD 9
This week, when Bitcoin finally started to break out of its sideways range, the rest of the cryptocurrency market caught fire. Decentralized financial tokens, small-cap altcoins, and Chainlink had risen in prices last month, and the rest of the market is catching up fast thanks to the market’s recovery later this week.
Achieving high performance in other areas such as Ethereum, Litecoin and XRP were mounted over the weekend, bringing Ripple to over 10% of the week’s ROI. The underperforming altcoin is now up over 100% from the bottom set on Black Thursday. Performance before this new pump had the asset drawing comparisons to sheep manure.
Although things have become brighter for XRP, a sell setup is complete after pushing prices higher today. Could this be the end of Ripple’s recovery, or is this simply a healthy one?
Ripple XRPUSD Daily Price Chart TD Sequential 9 Sell Setup | Source: TradingView
On daily timeframes on XRPUSD price charts, a “9” sell setup has triggered. The setup has also been perfected by this candle rising higher than the previous day’s close. The TD Sequential indicator has proven incredibly accurate across the crypto market for several years running. The tool is used to time potential tops and bottoms, by following a specific sequence of candle closes. If a reversal happens before the nine setups, the count simply begins over again. The tool has accurately called several Bitcoin tops and bottoms, along with many other altcoins.
A sell setup appearing on the XRP/USD price chart could lead to a correction after rising 12% this week. Signals are given the most significant weight on the highest time frames. Conflicting with this daily sales setup, there has been some higher timeframe buying setups on both USD and BTC trading pairs.
This may suggest that any correction occurs within a few days, while the more significant underlying trend is still rising.
XRP has spent nearly 900 days in a downtrend that it has recently broken out of. However, it still has a lot of work to catch up to do, so this could be just the beginning of the upside once this short correction is over.
First, Ripple will need to set its goal to overthrow Tether (USDT) to regain a third place on the CoinMarketCap chart.
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