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Key Ripple (XRP) Metric Plunges to 4-Month Low: Is This the Ultimate Rebound Signal?

🤖 GG AI Summary

Ripple's XRP token has dropped to a 14-month low of $1.11 amidst a broader market downturn, but a key technical indicator suggests a potential short-term recovery may be forthcoming. The Relative Strength Index (RSI) fell to 13 before rising to 40, indicating that the asset might be oversold and poised for a rebound. However, skepticism remains as some analysts predict further declines, with concerns about the increasing number of tokens held on Binance.

Sentiment: 45% Neutral

Ripple’s cross-border token nosedived to a 14-month low amid the recent crash of the broader cryptocurrency market. Despite the brutal collapse and the bearish conditions, one important indicator suggests that a short-term resurgence could be on the horizon. The Light at the End of the Tunnel The past 24 hours have been ruthless for the digital asset sector, and XRP undoubtedly felt the impact. Its valuation plummeted to $1.11 (per CoinGecko’s data), the lowest level since November 2024, while its market capitalization briefly shrank to nearly $70 billion. The violent move south has caused the asset’s Relative Strength Index (RSI) to reenter territory last seen during the October 2025 collapse. The technical analysis tool measures the speed and magnitude of recent price changes and ranges from 0 to 100. Ratios below 30 suggest that the valuation has declined too much in a short period of time, meaning the token is oversold and ready for a potential rebound. On the contrary, anything above 70 is considered a bearish zone. Hours ago, XRP’s RSI fell to 13, but later rose to the current 40. XRP RSI, Source: CryptoWaves Meanwhile, the asset’s price has regained some lost ground to nearly $1.40, raising the question of whether this marks the beginning of a genuine recovery or simply represents a dead-cat bounce. It is important to note that over the past few days, the spot XRP ETF netflows have been positive, suggesting that institutional investors remain interested in the asset. To put this into perspective, the same investment vehicles focused on Bitcoin (BTC) and Ethereum (ETH) have experienced massive red daily candles. Spot XRP ETFs, Source: SoSoValue Not so Fast Despite the optimistic signals mentioned above, some industry participants believe that a further crash is imminent. X user FEXIR | CRYPTO predicted that XRP may tumble below $0.50, while Charting Guy warned that the price could fall to $1. The increasing number of tokens stored on Binance reinforces fear...

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