XRP Indicator That Nailed Past Reversals Flashes Sell: Price Drop Imminent?

XRP flashes TD Sell 9 after 14% rally, with resistance at $2.75 and mixed RSI-MACD signals suggesting a potential pullback.

 

XRP has posted a sharp recovery in recent weeks, bouncing over 14% from October lows near $2.30 to highs above $2.65. 

However, a key technical signal known for marking reversal points the TD Sequential Sell 9 has now appeared again on the daily chart. Historically, this signal has preceded notable pullbacks, and traders are watching closely.

TD Sequential Flashes New Sell Signal on Daily Chart

The TD Sequential indicator, developed to identify trend exhaustion, has issued a Sell 9 on the daily timeframe for XRP/USDT. 

Past signals of this kind have often aligned with local tops and short-term pullbacks. For instance, in early October, a Sell 9 was followed by a 12.89% drop from around $3.10.

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Earlier signals have also proven effective. A Sell 9 near $3.60 in July preceded a 23.90% decline. In late August, a Sell 13 was followed by another 17.75% drop, further reinforcing the reliability of this tool during the recent bearish cycle.

Now, with a new Sell 9 appearing after a strong rebound, traders are watching closely. The level around $2.70 is being viewed as a key resistance, and a failure to break higher could confirm another pullback.

RSI and MACD Suggest Cooling Momentum

On the 4-hour chart, XRP’s Relative Strength Index (RSI) is currently at 61.56, indicating bullish momentum. However, it recently dropped from near-overbought levels, suggesting a possible cool-off. RSI remains above 50, which still supports a short-term bullish trend, but caution is rising.

Meanwhile, the MACD (Moving Average Convergence Divergence) shows the MACD line slightly below the signal line.

The histogram is negative at -0.00766, which reflects a weakening bullish move. Although not strongly bearish yet, this crossover suggests momentum is slowing.

There is also a mild bearish divergence between price and MACD, with price making higher highs while MACD fails to follow. This pattern can signal upcoming consolidation or minor corrections, especially if key support levels are broken.

Price Structure Shows Bullish Attempt but Faces Resistance

XRP has formed higher lows since the mid-October bounce, building a short-term bullish trend. The price recently moved above $2.60 and is consolidating below resistance at $2.70. A break above $2.75 could open the door toward $3.00, where stronger resistance awaits.

However, if XRP fails to hold $2.60, a drop to $2.50 or even $2.36 is possible. These are levels where buying previously returned, offering potential support zones. A move below $2.36 would challenge the bullish structure built over the past two weeks.

Traders are watching both momentum indicators and key levels for the next move. With the TD Sequential Sell 9 printed, short-term caution is rising, and many expect increased volatility if price fails to push through resistance.

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