XRP is showing early signs of recovery after weeks of steady selling pressure, with two separate technical studies pointing to a possible change in market direction.
While the token remains below recent highs, chart watchers believe several bullish signals are beginning to appear as the price holds above an important support level.
As per Ali Charts, XRP has formed two reversal patterns commonly seen on a daily chart. On the other hand, CryptoLlica revealed that the RSI of the token has hit the most oversold level in 13 years, which is an indicator that usually precedes a significant rally.
XRP Forms Bullish Reversal Pattern After Extended Decline
XRP has been falling for several weeks now. The sellers have managed to take the price from $1.20–$1.25 to the crucial psychological support area at $1.02. Every rebound ended in failure, so the downtrend continued.
Source: Ali Charts
XRP is looking good from a technical point of view, according to Ali Charts. The Tom DeMark Sequential pattern revealed a bullish signal, while a Morning Star Doji emerged close to the support of $1.02, suggesting reduced selling and increased buying interest.
Source: Ali Charts
XRP reached around $1.074. The cryptocurrency will need to hold its gains above $1.07–$1.10 with growing volume in order to continue its upward momentum towards the resistance levels of $1.15, $1.21, with an upside target of $1.30.
Also Read: Chainlink Price Prediction: Will LINK Rebound to $8.64 After Support Test?
Long-Term Structure Remains Intact Despite Correction
Despite the recent correction, the broader outlook of Cryptollica still appears bullish. XRP continues to trade within an expansive rising channel since 2017.
The recent decline brings the coin close to the lower support of the said channel, which has served as the launchpad for prior rebounds. Historical corrections seen during the years of 2014-2017 and 2021-2024 all had a breakout ending.
Source: X
Historic RSI Reading Strengthens Recovery Outlook
Among the key indicators is the RSI of XRP, which has dipped to roughly 34. CryptoLlicia describes it as the most oversold point since the inception of the coin thirteen years ago.
Such moments have seen the longest period of buying pressure in the past. Although an oversold RSI does not necessarily mean a quick bounce back in prices, it always indicates that the selling pressure has slowed down.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read: Litecoin Price Prediction: 2,100% Rally Could Begin From Key Accumulation Zone
