On March 7, prominent crypto analyst Ali Martinez took to X to share a bearish outlook for XRP, pointing to multiple sell signals flashing on the two-week chart via the TD Sequential indicator.
With XRP trading at $2.53 at the time of his post at 10:08 AM UTC, down from $2.60 on March 6 at 16:37 UTC, when the chart was captured, this 2.7% dip has sparked interest.
The TD Sequential, a technical tool developed by Tom DeMark, is designed to spot trend exhaustion and reversals. Operating on a two-week timeframe, it’s a slow-moving signal that often marks significant turning points after prolonged moves.
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Martinez, who has cited the indicator’s reliability for XRP since 2022, implied that the token’s recent price action had hit a ceiling, with a pullback looming. The price movement between the chart’s timestamp at 16:37 UTC on March 6 and his post 17.5 hours later at 10:08 AM UTC on March 7, where XRP dipped from $2.60 to $2.53, aligns neatly with his bearish call.
However, timing is critical in trading, and analysts can sometimes face scrutiny for presenting data in a way that fits their narrative after the fact. If the technical and on-chain analyst had posted the chart in real-time on March 6, the call would have carried more weight as a proactive signal, rather than appearing to wait for confirmation of the decline.
XRP sell signal analysis
Could the sell signals still be valid? Quite possibly.
The TD Sequential’s two-week timeframe means it’s less sensitive to short-term fluctuations, like the $0.07 drop, and more focused on broader trends.
Over the last seven days, the token surged 44.3% from $2.03 on March 1 to a high of $2.93 on March 3, accompanied by the highest volume recorded, signaling intense buying pressure that likely marked the initial exhaustion point.
A secondary high of $2.65 on March 6, with a notable but lower volume spike, suggests a retest of resistance or a failed breakout attempt. The chart reveals a sharp red candlestick dropping to $2.50-$2.55 by March 7, reinforcing the reversal as sellers took control.
The highest volume on March 3 likely completed a “9” setup in the TD Sequential, indicating the start of a potential reversal, while the March 6 volume spike and subsequent drop to $2.50-$2.53 could mark the beginning of a “13” countdown phase, confirming the earlier signal.
This alignment supports Martinez’s assertion of multiple sell signals, with the broader trend suggesting the rally from $2.03 had run its course. Now the $2.50-$2.55 range on March 7 now serves as immediate support. A break below this level could target $2.40, signaling further downside and validating the bearish outlook.
Featured image via Shutterstock
