XRP price movements are drawing renewed attention as a critical market indicator has flashed a new buy signal, raising optimism for a potential rally among traders and the XRP community.

TD Sequential Hints at a Short-Term Reversal

Despite XRP slipping from its recent all-time high, technical analysts believe a major rebound may be imminent. The TD Sequential indicator—a widely followed tool known for predicting market exhaustion—has issued a bullish signal on XRP’s hourly chart. This indicator had precisely predicted XRP’s earlier top in mid-July, when the token soared to $3.65.

According to analyst Ali Martinez, who frequently references the TD Sequential in his work, this latest buy signal on the lower timeframe could suggest XRP is ready to bounce back. Shared via Twitter, he noted, “$XRP looks ready to rebound as the TD Sequential prints a buy on the hourly chart.”

Technical analysis suggests XRP may be gearing up for a rebound based on the hourly chart.

Recent Price Pullback and Support Levels

XRP’s price recently fell to a three-week low, dipping to $2.81 on Bitstamp. This came after it broke below the key psychological support of $3.00, sparking concerns of a bigger correction. Some analysts even suggested the price could fall as far as $2.10 if bearish momentum continued.

However, with new bullish signals from technical indicators, there is growing belief that XRP’s downturn might have hit its limit and the tide could be turning. By regaining upward traction, XRP may also escape the broader downtrend observed earlier this month.

BTC Comparison and Market Dominance Trends

In addition to USD performance, analysts are closely watching XRP’s behavior relative to Bitcoin. CRYPTOWZRD, another well-known crypto analyst, pointed out that XRP recently closed bullish against bitcoin, a notable development considering bitcoin’s declining dominance on the broader market.

According to CoinGecko data, bitcoin dominance dropped from 57.9% to 57.4% in just one day. With XRP showing relative strength, there’s potential for the altcoin to continue gaining ground—especially if this trend of falling BTC dominance persists. CRYPTOWZRD stressed the importance of XRP breaking through the $3.02 resistance level, a key price point that previously acted as support but now stands as a near-term barrier.

In a recent update, CRYPTOWZRD summarized the situation: “$XRP and XRPBTC closed bullish. We should see further upside momentum in XRPBTC as BTC.D declines.”

If XRP can hold above the $3.02 resistance level for a sustained period, that would significantly strengthen the case for a broader rally, according to several technical projections.

Outlook for XRP Traders

With encouraging signals emerging from both price actions and trading indicators like TD Sequential, market participants are closely monitoring how XRP behaves in the coming sessions. The crypto market remains volatile, but for now, bullish sentiment around Ripple’s native asset appears to be growing.

Related: XRP Price: $12M Max Pain for Bears

As long as XRP maintains its momentum and holds key resistance and support levels, the chances for continued upside look increasingly favorable—even in the face of broader market uncertainties.