XRP Price Surge Likely as Analyst Points to Bullish Chart Signal
TLDR
- Stochastic RSI at 0.00 indicates exhaustion of selling pressure for XRP.
- XRP price remains below key resistance levels but shows signs of bullish momentum.
- XRP ETFs see inflows, signaling continued institutional interest in the asset.
- XRP price could surge if it reclaims $1.98, targeting levels near $3.66.
A new chart analysis by crypto expert Steph suggests that XRP may be poised for a price surge. According to the analyst, the current market conditions and a specific technical indicator are presenting a positive outlook for the altcoin. This chart signal, which has been linked to previous XRP rallies, suggests that a significant move could be on the horizon.
Stochastic RSI Indicates Exhaustion of Selling Pressure
Steph pointed out an important signal on the 3-week XRP price chart that could mark the bottom of the current bearish trend. The Stochastic Relative Strength Index (RSI) recently reached 0.00, a rare occurrence that has only happened once before, at the 2022 bear market bottom. This suggests that selling pressure has been exhausted and that the downside risks for XRP are limited.
The RSI reaching such a low point on a high timeframe, like the 3-week chart, is typically seen when market sentiment has fully shifted from a sell-off phase to a potential accumulation phase. While Steph noted that this doesn’t guarantee an immediate price reversal, the chart pattern points to the possibility of a rally in the coming months.
Steph also highlighted that similar signals in the past have been followed by an extended accumulation phase before prices moved higher. This reinforces the idea that the risk of further downside is structurally limited, and long-term holders are likely absorbing supply rather than distributing it. The analyst emphasized that these signals are often indicators of market cycle lows rather than short-term trading opportunities.
XRP ETFs Continue to See Positive Flows
The analyst also drew attention to the continued growth of XRP Exchange-Traded Funds (ETFs), which have been attracting institutional investors. Since the launch of the Canary fund on November 13, XRP ETFs have experienced consistent daily inflows, totaling over $1.1 billion in net assets.
This ongoing inflow suggests strong institutional demand for XRP, even as the cryptocurrency’s price has remained below key resistance levels. Institutional interest in XRP is generally seen as a positive sign, as it indicates long-term confidence in the asset’s potential, despite the fluctuations in price. The continuous inflows into XRP ETFs could provide additional support for the altcoin’s price in the future, particularly if market conditions turn favorable.
XRP Price Faces Key Resistance Levels
Despite the optimism around XRP’s potential, the price remains below critical resistance levels, which could limit short-term gains. According to analyst CryptoXLarge, XRP is currently trading below the descending trendline around the 8 to 21 Exponential Moving Averages (EMA). Additionally, the price is attempting to break below key support at $1.95, which has been a significant level throughout the year.
A weekly close below $1.95 could increase the likelihood of a drop to the $1.60 support level, near the Fibonacci 0.618 level. However, if XRP can close above $1.95, it could trigger a relief rally with potential price targets near $2.30 and $2.70. Crypto King, another analyst, suggested that reclaiming the $1.98 level could eventually push XRP to as high as $3.66, signaling a significant upward trend.
At the time of writing, XRP’s price is hovering around $1.87, showing a slight increase in the last 24 hours. As the market continues to monitor XRP’s movement, traders are closely watching for a breakout above these key levels, which could set the stage for a more substantial rally
The post XRP Price Surge Likely as Analyst Points to Bullish Chart Signal appeared first on CoinCentral.
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