XRP flashes its fourth ‘sell’ signal – What happens if it’s right again?

Key Takeaways 

Why did XRP flash a TD Sequential sell signal?

The indicator repeated its accurate reversal pattern, showing momentum loss despite XRP’s breakout and rising Spot Volume.

What price zones are critical for XRP traders?

Resistance holds at $2.70, while $2.40 serves as local support if selling pressure builds on Spot exchanges.

Ripple [XRP] flashed a new TD Sequential sell signal after three months of consistent accuracy in identifying trend reversals, raising speculation about an incoming correction. 

Historically, a completed nine-count phase from this indicator often preceded trend shifts as bullish momentum faded. Over recent months, measurable price drops followed each identical signal.

That pattern reappeared after XRP’s rebound, hinting that the ongoing upswing might be losing strength.

XRP breakout struggles at resistance

XRP broke out of a descending channel and managed to reclaim the $2.60 level at press time; however, it continued to struggle near the $2.69 resistance zone. 

The 4-hour DMI showed early signs of fatigue, with +DI at 17.55 and –DI slightly higher at 18.33, implying bearish momentum. Moreover, the ADX at 28.02 confirmed trend strength but without a clear directional bias.

This meant bulls struggled to sustain momentum above resistance without renewed Spot Volume or stronger inflows.

Exchange data points to selling pressure

XRP’s Netflows shifted sharply within a day, from $31.6 million in outflows to $653K in inflows at press time, pointing to increased selling pressure across Spot markets. 

Typically, such inflow spikes reflect traders sending their holdings to exchanges to secure profits or hedge positions.

This behavior tends to occur near short-term tops, often leading to minor corrections or consolidation phases. 

Given that this shift coincided with a TD Sequential sell signal, it suggested traders were positioning defensively. 

Short liquidations cluster near $2.70 

The Binance Liquidation Heatmap highlighted a dense concentration of short liquidations between the $2.68 and $2.70 range, revealing that many bearish traders were caught off-guard by XRP’s recent rebound. 

In fact, this short squeeze temporarily added buying momentum, allowing the price to retest resistance. 

However, beyond this zone, liquidity thins considerably, implying limited upside potential unless volume expands. 

The liquidation activity near these levels also suggested that $2.70 remained a decisive barrier. 

If buyers fail to establish strength above it, the sell-side liquidity may reassert control, paving the way for another local correction toward the $2.40 support zone.

Can XRP defy the sell signal?

Despite the breakout, the TD Sequential, DMI, and Netflows together suggest weakening upside.

Unless XRP breaks and holds above $2.70 with solid volume, a pullback toward $2.40 appears more probable.

Traders now watch whether the TD Sequential maintains its accuracy streak or if XRP can defy it and extend beyond resistance.