The crypto markets have been volatile for the past week as a result from XRP testing support around $2.00 (currently around $1.94) after recent corrections. Crypto analyst Ali Martinez pointed out a major technical development for XRP with the TD Sequential indicator providing a buy signal on the 4-hour chart. While XRP has experienced recent bearish price action fundamental developments in institutional interest show bullish potential creating a potential turning point for XRP.
Understanding the TD Sequential Signal
Tom DeMark, a technical analyst, developed the TD Sequential (TDSEQ) indicator to assist in predicting the exhaustion and reversal of price trends. The formation of nine consecutive bearish candles during the setup typically signals a conclusion to near-term selling pressure. This scenario has unfolded with XRP, which has recently dipped below the crucial psychological level of $2.
According to market data gathered by Brave New Coin, the TD Sequential has demonstrated notable reliability for XRP looking ahead to 2025. Historical trends indicate an 18% rebound at the start of December and an accurate August sell signal that forecasted a 24% decline. The current signal that appears at the $1.90 support level where previous declines have historically stabilized gives added weight to the bullish case.
Institutional Momentum Builds Despite Price Weakness
Perhaps the biggest contrast in the current market position of XRP is its faltering price action and strong institutional adoption. The U.S. spot XRP ETFs have over $1.2 billion in assets under management and continue to accumulate net inflows despite the decrease in the token’s price.
On December 5, 2025, these ETFs brought in roughly $12.84 million in fresh inflows, extending their streak of positive days to 13. The steady buying suggests that institutional investors view current price levels as attractive entry points rather than cause for concern. The institutional story goes beyond ETF game, Digital Wealth Partners pairing algorithmic XRP trading strategies with qualified retirement accounts, VivoPower deal to purchase Ripple labs equity announced.
Technical Structure and Market Outlook
Although the TD Sequential buy indicator (along with institutional inflows) is creating a potentially optimistic outlook, technical analysts are still unwilling to predict the future movement of XRP in the short run. The token is currently trading below all major moving averages, and this is a bearish configuration that usually signifies sustained bearish pressure. Short-term price action has been consolidating in a falling channel, with each bounce encountering distribution around $2.04 to $2.05 resistance.
On a bearish note, the $1.90 level has become a critical near-term support. A sustained breakdown below this level would expose the $1.80 area, which is the next major demand area. This uncertainty is captured in market sentiment indicators with the Crypto Fear and Greed Index going to 23, which reflects extreme fear that has historically been associated with market bottoms.
Conclusion
XRP is battling it out between TD Sequential buy signals and the unprecedented ETF slurry and suggesting signs of rebounds, and technical weakness and macroeconomic headwinds that present downside risks. The great question is whether institutional accumulation can overcome negative sentiment? For investors, this risk-reward profile is in favor of longer time horizons and accepting greater volatility. Market participants will be monitoring resistance reclamation, ETF sentiment, and Bitcoin correlation as the month of December progresses to see where the next move is in direction.
