A popular cryptocurrency analyst has posited that the native token of the XRP Ledger could see a dramatic price surge to a new all-time high of $4 over a key technical pattern that suggests a breakout could be coming after a brief correction.
In a post shared on X, popular cryptocurrency analyst Ali Martinez noted that on XRP’s four-hour price chart a bull flag has formed at a time in which the chart’s TD Sequential indicator started flashing a sell signal as well.
https://twitter.com/ali_charts/status/1867187774903791759
The TD Sequential indicator was developed by Tom Demark, and is used to identify the exact time of trend exhaustion and potential points of reversal. It involves counting a series of price bars and comparing them to previous price bars to find exhaustion points.
A buy signal in the TD Sequential indicator appears when the series indicates that the downtrend is likely exhausted and a reversal to an uptrend is probable. This typically happens after a countdown of 9 bars, where each bar closes lower than the bar four periods earlier.
A bull flag, on the other hand’s a chart pattern formed by a flagpole, in which an asset’s price makes a strong upward move, and a flag in which the price starts dropping slowly, as if to form a flag waiving in the wind. If the pattern holds, the asset’s price eventually breaks out of the formation to keep on rising.
As reported, a ttle-watched indicator is flashing a bullish signal for two major cryptocurrencies, leading meme-inspired token Dogecoin (DOGE) and the native token of the XRP Ledger, suggesting they may be poised for a price surge in the near future.
The metric Mean Dollar Invested Age, tracked by on-chain analytics firm Santiment, measures the average age of every dollar invested in a cryptocurrency. According to the firm, in a post on the microblogging platform X (formerly known as Twitter), the metric shows several cryptocurrencies including Bitcoin, XRP, and DOGE are seeing their Mean Dollar Invested Age line move down.
A downward movement in the metric “indicates that older, stagnant wallets (particularly from large key stakeholders) are circulating their dormant coins back into circulation, increasing network activity.” The indicator uses on-chain data to track when a coin was last moved on a network and, per Santiment, is one of the “key indicators throughout the history of each coin’s lifespan that helps validate that a bull market can and should continue.”
The indicator was accurate in the 2017 and 2021 bull markets, the firm added, noting that these came to a halt only after assets’ mean ages started rising again.
Featured image via Pixabay.
