Key Takeaways:
- XRP's 10-day RSI hit oversold levels seen only three times in 13 years
- A move to $1.39-$1.40 would represent a 23% to 25% gain from current levels
- $236.5 million in short liquidations are concentrated in the $1.37-$1.40 price range
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XRP hits decade-low oversold level with potential 25% rally ahead
XRP's 10-day RSI has dropped to levels seen only three times in 13 years, each preceding rallies of 20% or more.
XRP fell to $1.13 on June 23, its 10-day relative strength index reaching oversold territory not seen in over a decade, CoinGecko data shows.
"In 13 years, XRP has only been this washed out three times," analyst Cryptollica said. "The first two times, the crowd laughed, ignored it, and only understood the setup after price had already left."
The 20-week exponential moving average for XRP sits near $1.39, just above the 200-week EMA at $1.40, positioning the token for a potential death cross. Historical instances of similar formations triggered rallies of 20% in 2019 and 82.7% in 2022, with the 200-week EMA serving as a price magnet both times. A move to $1.39-$1.40 would represent a 23% to 25% gain from current levels.
Short Liquidation Risk Adds Fuel Near $1.40
CoinGlass liquidation heatmaps show $236.5 million in short positions concentrated in the $1.37-$1.40 corridor. An upward move would force traders holding those shorts to buy back positions, adding momentum toward the target zone. The weekly RSI for XRP currently registers just above 30, a level traditionally associated with oversold conditions that signal downward momentum may be exhausting itself.
Analyst EGRAG CRYPTO's cyclical model projects a best-case target of $8.00, with a conservative cycle target of $5.70, while analyst Javon Marks noted that each major momentum trough in XRP's history has produced gains exceeding 10 times from comparable bottom formations. XRP's 24-hour trading volume stands at $1.45 billion, supporting a market capitalization of $70.99 billion, with the token posting a 6.02% gain over the past 24 hours.
The rare oversold signal could trigger short-term buying pressure and a technical rebound, potentially spilling over to the broader altcoin market as traders monitor whether XRP can reclaim the $1.40 resistance level in the coming sessions.
This article is for informational purposes only and does not constitute investment advice.
