XRP is showing two bullish reversal signals, raising the possibility of a near-term recovery after a prolonged decline.
In this regard, the cryptocurrency has printed a Tom DeMark Sequential buy signal while simultaneously forming a Morning Star Doji pattern, two technical indicators that traders often monitor for signs of a potential price bottom, according to insights shared by Ali Martinez in an X post on June 27.
At the time of the analysis, XRP was trading below the $1.10 mark after falling from levels above $1.20 earlier in the month.
The emergence of both indicators suggests selling pressure may be weakening, with a relief rally potentially developing if buying volume increases.
According to the analysis, XRP has completed a Tom DeMark (TD) Sequential buy setup on the daily timeframe.
The TD Sequential indicator printed a bullish “9” candlestick, a signal that typically appears after an extended downtrend.
In technical analysis, a completed nine-count often indicates that bearish momentum is becoming exhausted and that a short-term rebound could follow.
Historically, the pattern has been used to identify potential turning points, with relief rallies often lasting between one and four daily candlesticks.
The signal appeared after XRP recorded several consecutive declining sessions, pushing the asset toward the $1.02 support area.
XRP Morning Star Doji candlestick print
Supporting the bullish outlook is the formation of a Morning Star Doji candlestick pattern over the last three trading sessions.
The pattern consists of a strong bearish candle, followed by a small-bodied indecision candle, and then a bullish candle. It is widely regarded as a classic reversal formation that can signal the end of a localized downtrend.
On XRP’s daily chart, a Morning Star Doji formed near recent lows around $1.02. This positioning is particularly significant because reversal patterns tend to carry more weight when they appear after a sustained decline and near established support zones.
The combination of a TD Sequential buy signal and a Morning Star Doji strengthens the case that XRP may be attempting to establish a short-term bottom.
While technical indicators suggest improving momentum, confirmation will depend on whether buyers step in with sufficient volume.
If buying volume increases and XRP holds above recent support, the token could rally toward $1.30. However, a sustained move above key resistance levels will be needed to confirm a broader trend reversal, while weak demand could trigger renewed selling pressure.
XRP price analysis
By press time, XRP was trading at $1.05, down about 1.2% over the past 24 hours. On the weekly timeframe, the asset has declined nearly 9%.
XRP is currently trading below both its 50-day simple moving average (SMA) of $1.26 and 200-day SMA of $1.52, indicating that the cryptocurrency remains in a strong downtrend across both the medium and long term. Trading beneath these key moving averages suggests bearish momentum continues to dominate despite recent stabilization.
Meanwhile, XRP’s 14-day Relative Strength Index (RSI) stands at 31.73, just above the oversold threshold of 30.
While the RSI remains neutral, it suggests selling pressure may be nearing exhaustion, increasing the likelihood of a short-term rebound.
