XRP Flashes Rare TD Sequential Buy Signal as Analyst Eyes Rebound to $1.35

XRP Flashes TD Sequential Buy Signal as Analyst Predicts Rebound Toward $1.35

XRP Price Shows Signs of Recovery Despite Heavy Investor Losses

XRP may be preparing for a short-term rebound after a widely followed technical indicator flashed a bullish setup on the 4-hour chart. The signal comes at a critical moment for the cryptocurrency, as investor sentiment remains fragile following a steep correction that left many recent buyers sitting on massive unrealized losses.

Crypto analyst Ali Martinez recently highlighted that the Tom Demark (TD) Sequential indicator has triggered a buy signal for XRP, suggesting the token could be nearing a temporary reversal after weeks of sustained selling pressure.

At the same time, on-chain data from analytics platforms Santiment and CryptoQuant shows XRP traders are experiencing one of the deepest periods of unrealized losses and weakest liquidity conditions seen in years.

The combination of oversold market conditions, reduced liquidity, and bullish technical signals has now intensified speculation that XRP could be approaching a high-volatility turning point.

TD Sequential Flashes Bullish Signal on XRP 4-Hour Chart

According to analyst Ali Martinez, XRP has completed a bullish TD Sequential setup on the 4-hour timeframe.

The TD Sequential is a technical analysis indicator commonly used by traders to identify potential trend exhaustion points and possible reversals in price action.

The indicator works by counting consecutive candles moving in the same direction.

How the TD Sequential Works

The setup phase of the indicator tracks nine consecutive candles:

Nine bearish candles typically generate a bullish reversal signal
Nine bullish candles usually generate a bearish reversal signal

In XRP’s case, the latest setup formed after a series of negative candles, indicating that bearish momentum may be reaching exhaustion.

Martinez stated that XRP could rebound toward the $1.35 region before the broader downtrend potentially resumes.

The signal has attracted significant attention because TD Sequential reversals have historically aligned with short-term market turning points across both crypto and traditional markets.

XRP Struggles to Escape Consolidation Phase

Despite the bullish technical setup, XRP remains trapped in a prolonged consolidation range.

At the time of analysis, XRP traded near $1.33 after pulling back sharply from recent highs around $1.54.

The asset has spent months struggling to establish sustained bullish momentum, with repeated failures near major resistance zones frustrating traders and investors alike.

Price action over the past several weeks has reflected increasing uncertainty across the broader cryptocurrency market, with XRP underperforming during key recovery attempts.

Still, some analysts believe the current structure may represent an accumulation phase rather than the beginning of a larger collapse.

Santiment Data Shows XRP Holders Deeply Underwater

While technical analysts monitor reversal indicators, on-chain data reveals the extent of pain currently affecting XRP investors.

Blockchain analytics firm Santiment reported that XRP’s 30-day Market Value to Realized Value (MVRV) ratio has fallen to its lowest level since December 2020.

The MVRV ratio measures the average profit or loss of investors who purchased an asset during a specific timeframe.

In this case, the 30-day MVRV tracks the unrealized returns of XRP buyers active over the past month.

According to Santiment, the average XRP trader from the last 30 days is currently sitting on an unrealized loss of approximately 47%.

That represents one of the deepest negative readings in years.

Why the MVRV Ratio Matters

Historically, extreme negative MVRV readings have often coincided with undervalued market conditions.

Santiment explained that MVRV readings generally trend back toward equilibrium over time, meaning heavily negative periods can sometimes precede strong rebounds.

The analytics firm described the current environment as an “extreme undervalued zone” for XRP.

However, Santiment also cautioned that oversold conditions alone do not guarantee an immediate recovery.

Markets can remain undervalued for extended periods, particularly during broader bearish phases or weak liquidity environments.

Still, long-term investors often monitor deeply negative MVRV readings as potential accumulation opportunities.

Binance XRP Liquidity Falls to Lowest Level Since 2020

Adding another layer to the story, CryptoQuant analyst Arab Chain revealed that XRP’s 30-day liquidity index on Binance has dropped to approximately 0.043 — the weakest reading recorded since January 2020.

This sharp decline indicates a major deterioration in market depth and available trading liquidity.

For comparison, the same liquidity index previously climbed above 3.0 during stronger trading periods between 2022 and 2024, occasionally surpassing 4.0.

The collapse in liquidity suggests several important shifts:

Speculative trading activity has weakened
Market participation has declined
Fewer buy and sell orders exist on exchanges
Fresh capital inflows have slowed
Large trades can move price more aggressively

XRP Flashes Rare Crypto Signal: Is a Massive Rebound Next?

According to Arab Chain, the current conditions reflect a substantially thinner market environment compared to previous bullish cycles.

What Low Liquidity Means for XRP Price Action

Low liquidity environments often create conditions for extreme volatility.

When fewer orders exist within the order book, large buy or sell transactions can move price significantly with relatively little resistance.

This means XRP could experience:

Sharp upward spikes
Aggressive selloffs
Increased intraday volatility
Larger liquidation cascades
Faster trend accelerations

Importantly, low liquidity itself is not inherently bullish or bearish.

Instead, it signals heightened market sensitivity.

If strong buying pressure returns, XRP could rally aggressively due to the lack of sell-side resistance.

Conversely, continued selling pressure could trigger rapid downside moves if buyers remain inactive.

XRP Whale Activity Also Declining

Another notable trend is the sharp drop in whale transaction activity.

Reports indicate that XRP whale transfers valued above $1 million have declined by approximately 57% over a nine-day period.

This reduction suggests that large investors may currently be:

Waiting for clearer market direction
Reducing speculative exposure
Avoiding aggressive accumulation
Remaining cautious amid volatility

Declining whale activity often reflects uncertainty in market sentiment and can contribute to reduced liquidity conditions.

Without consistent large-scale participation, price momentum tends to weaken.

Analysts Warn About Key Resistance Near $1.65

Crypto analyst CasiTrades highlighted that XRP has spent nearly four months struggling to break above the critical $1.65 resistance level.

Repeated rejection from this zone has strengthened its importance technically.

According to the analyst, the longer XRP remains below $1.65, the greater the risk of another major downside move before a sustainable recovery can develop.

The inability to reclaim higher resistance levels has prevented bullish momentum from fully returning to the market.

Critical XRP Price Levels Traders Are Watching

Several support and resistance zones now stand out as key areas for traders.

Immediate Resistance Levels

$1.35 — Short-term rebound target
$1.54 — Recent local high
$1.65 — Major macro resistance zone

A successful breakout above $1.65 would represent one of the first major signs that XRP bulls are regaining long-term control.

Major Support Levels

If selling pressure continues, analysts are closely monitoring:

$1.10
$0.87

These areas may act as strong support zones during any additional downside movement.

A breakdown below those levels could potentially weaken the broader recovery structure significantly.

XRP Market Cap Holds Near $80 Billion

Despite the recent correction, XRP continues maintaining a substantial market valuation.

At the time of analysis, XRP’s market capitalization remained near $79.9 billion, underscoring the asset’s continued importance within the broader crypto ecosystem.

However, maintaining such valuation levels may require renewed investor confidence, stronger liquidity conditions, and clearer bullish momentum in the weeks ahead.

Can XRP Stage a Recovery From Here?

The current XRP setup presents a mixed but highly interesting picture.

On one side, technical indicators like the TD Sequential and deeply negative MVRV readings suggest the market may be entering an oversold territory historically associated with rebounds.

On the other hand, weak liquidity, declining whale activity, and persistent resistance near $1.65 continue limiting bullish momentum.

For now, XRP appears to be sitting at a critical inflection point.

If buyers respond to the TD Sequential signal and reclaim short-term resistance zones, the token could attempt a recovery toward $1.35 and eventually higher resistance levels.

However, failure to attract fresh demand could leave XRP vulnerable to another leg lower toward major support zones near $1.10 or even $0.87.

As volatility increases and liquidity remains thin, traders should expect larger-than-normal price swings in either direction over the coming sessions.