All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- XRP recently fell below 20 on the Relative Strength Index chart, marking a strong oversold condition.
- However, analysts believe this could be a bullish sign as investors may seek to take advantage of the drop to re-enter the market.
XRP was one of the top coins caught up in the recent market recession, plunging below a crucial support level to find a resort at $2.78. According to market data, this was its lowest in two weeks. However, the asset has begun to bounce back as it records a 1.8% surge on its 24-hour price chart to trade at $2.87.
Meanwhile, its returns on the weekly and monthly charts are still 3.9% and 5% down, respectively. XRP’s daily trading volume has also surged by 21% to $7.6 billion. According to our data, its market cap has marginally increased to $171.8 billion.
Analysts Hint at a Potential Rebound for XRP
XRP’s recent struggle is evident in the readings of the various market metrics, including the Relative Strength Index. Based on our research, the RSI recently fell below the 20 level, marking its lowest reading in three months. While this basically reveals the current status of an asset, analysts largely rely on the RSI to spot reversals. The current reading indicates that XRP is strongly oversold, suggesting that a reversal could be recorded soon.
According to some XRP enthusiasts, including John Squire, these kinds of corrections are normal. Commenting on the recent pullback, Squire disclosed that XRP “merely went on a coffee break,” indicating that this is normal.
XRP drops a few cents and y’all lose your minds… Meanwhile, Bitcoin dumps $3K and it’s ‘just a healthy correction, bro.’ Stay calm, hodl tight, if you survived 2018, this is a coffee break.
Different analysts have echoed similar sentiments in the past. When XRP declined by 10% in July, Bitpanda executive Lukas Enzersdorfer-Konrad assured that such a level of drop is normal, as indicated in our earlier discussion.
Joining the conversation, another popular analyst called Egrag Crypto highlighted that the asset’s bullish setup is safe as long as the short-term support of $2.77 and the long-term support of $2.65 remain intact. Another analyst has also stated that the long-term cup patterns of the asset have completed, positioning it for a surge to $36 in the long term, as mentioned in our previous news brief.
Analyst Erica Hazel also hinted that most XRP traders have a strong confidence in a potential rebound, as the majority of Binance traders dealing with the asset open long positions. Apart from that, Hazel pointed out how investors are switching to self-custody in the last 48 hours.
Indeed, the exchange outflow has surpassed $66 million within the period. Based on the current market behavior, Hazel believes that $3.65 is the next crucial resistance level of XRP. Once it breaks above this level, XRP could go on an explosive run.
XRP’s final explosive surge this cycle is expected to be influenced by the much-anticipated Exchange Traded Fund (ETF) approval. According to our recent update, October could be the last deadline for approval. As also noted in our earlier post, Matthew Sigel, the head of digital assets research at VanEck, has hinted that the XRP ETF could attract at least $3 billion in inflows in the first year of trading.
