XRP has dropped over 5% in the past 24 hours but is now showing early signs of recovery as it attempts to reclaim the critical $2.00 mark. After plunging into deeply oversold territory earlier today—marked by a near-record low Relative Strength Index (RSI) reading—the digital asset is staging a technical rebound amid shifting macroeconomic sentiment. While broader market conditions remain cautious, short-term momentum may be turning in favor of bulls.
Despite a bearish alignment on the Ichimoku Cloud and ongoing resistance overhead, the recent price action suggests that selling pressure could be easing. Whether this recovery sustains will depend on XRP’s ability to break key technical levels and respond positively to improving market dynamics.
XRP RSI Bounces From Deeply Oversold Levels
The Relative Strength Index (RSI) for XRP currently stands at 44.24, recovering from a brief plunge to 17.80 earlier today—the lowest level in weeks. This extreme oversold condition often precedes short-term reversals, especially when triggered by external catalysts such as shifting macro headlines.
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Just one day prior, the RSI was at 46.97, highlighting the intense volatility XRP has experienced during the recent market correction. The RSI, which measures price momentum on a scale from 0 to 100, typically signals oversold conditions below 30 and overbought conditions above 70. With the current reading near the neutral 45 zone, XRP is no longer in oversold territory, but bullish conviction remains limited.
Notably, XRP has not entered overbought territory (above 70) in nearly three weeks, underscoring a lack of sustained upward momentum. A move above 50 could signal growing buyer interest and potentially open the door for a more durable recovery. Conversely, if the RSI stalls or turns downward again, sideways or bearish price action is likely to follow.
Market participants are watching closely to see whether this bounce gains traction or fades under persistent resistance.
Ichimoku Cloud Signals Bearish Pressure — But Light at the End of the Tunnel?
The Ichimoku Cloud chart for XRP reveals a predominantly bearish structure. Price is trading significantly below the Kumo (cloud), indicating strong downward momentum and a lack of immediate bullish support. Both the Tenkan-sen (blue line) and Kijun-sen (red line) are sloping downward and positioned above the current price, acting as dynamic resistance levels.
The cloud ahead is red and wide, reinforcing bearish sentiment and suggesting that any upward movement will face strong headwinds. In traditional Ichimoku analysis, a price below a descending red cloud confirms a downtrend, and a reversal typically requires a break above both the cloud and the baseline indicators.
However, there are early hints of stabilization. A recent bullish candlestick has pushed XRP closer to the Tenkan-sen, suggesting potential buying interest and the possibility of a short-term relief rally. While not yet a confirmed trend shift, this movement indicates that sellers may be losing some control.
For a true bullish reversal to take hold, XRP must first break above the Tenkan-sen and Kijun-sen, then move into or above the cloud. Such a move would signal strengthening momentum and could attract renewed investor confidence. Until then, the path of least resistance remains downward.
Can XRP Break Above $2.20 in the Near Term?
XRP recently dipped below $1.80 for the first time since November 2024, reflecting intense selling pressure and profit-taking after previous rallies. However, in the past few hours, the asset has begun to recover, attempting to rebuild momentum.
If this rebound continues with increasing volume and positive market sentiment, XRP could target resistance near $2.02. A decisive breakout above this level may pave the way for a move toward $2.23—a key psychological and technical resistance zone.
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On the downside, failure to sustain gains could see XRP fall back below $1.80. Should that level break, the next major support lies around $1.61. A drop to this zone would increase bearish pressure, and if selling accelerates, prices could extend toward $1.50.
Traders are advised to monitor volume patterns and broader cryptocurrency market trends—especially Bitcoin’s movement—as XRP often follows macro-market direction.
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Frequently Asked Questions (FAQ)
Q: What does an RSI of 17.80 mean for XRP?
A: An RSI reading of 17.80 indicates that XRP was deeply oversold, meaning it may be due for a short-term bounce. Extremely low RSI values often precede temporary reversals, though they don’t guarantee a long-term trend change.
Q: Is XRP currently in a bull or bear market?
A: Based on the Ichimoku Cloud and price positioning below key moving averages, XRP remains in a bearish trend. However, short-term rebounds can occur even within downtrends due to oversold conditions.
Q: What is the significance of the $2.23 resistance level?
A: $2.23 represents a confluence of historical resistance and Fibonacci extension levels. A breakout above this zone could attract new buying interest and signal stronger bullish momentum.
Q: How reliable is the Ichimoku Cloud for predicting XRP moves?
A: The Ichimoku Cloud is widely used for identifying trend direction, support/resistance, and momentum. While not infallible, it provides a comprehensive view when combined with other indicators like RSI and volume.
Q: Could macro news impact XRP’s recovery?
A: Yes. Recent rumors of a potential 90-day tariff pause by former President Trump—excluding China—briefly lifted market sentiment and contributed to crypto-wide rallies, including XRP’s rebound.
Q: What should traders watch next?
A: Key levels include $1.61 (support), $1.80 (recent breakdown), $2.02 (near-term resistance), and $2.23 (strong resistance). Additionally, monitor RSI movement toward 50 and any shift in Ichimoku alignment.
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Final Thoughts
While XRP remains in a technically weak position overall, its recent rebound from deeply oversold levels offers a glimmer of hope for short-term traders. The bounce in RSI and tentative bullish candlesticks suggest that downside momentum may be slowing.
However, structural bearish signals—particularly from the Ichimoku Cloud—warn against premature optimism. A sustainable recovery will require breaking above key resistance zones with strong volume and broader market support.
Investors should remain cautious, use risk management strategies, and stay informed through reliable technical analysis platforms. As always, conduct independent research before making any investment decisions.
This article is for informational purposes only and does not constitute financial or investment advice.