XRP Price is once again in the spotlight as crypto analyst Steph reveals a chart that could signal an impending rally. The focus on the Stochastic RSI suggests a pivotal moment for XRP enthusiasts.
In a recent analysis, Steph pointed out the 3-week XRP price chart, calling it “interesting” for its unique indicators. Notably, the Stochastic Relative Strength Index (RSI) has plummeted to 0.00 on this timeframe, a rare occurrence last seen during the 2022 bear market bottom. This indicator reaching zero signifies exhausted selling pressure, a potentially bullish sign for XRP.
XRP Price and Stochastic RSI: A Closer Look
When the Stochastic RSI reaches such low levels, it often indicates that downward momentum has significantly waned. While Steph cautions that this doesn’t guarantee an immediate price reversal, historical patterns suggest a promising setup. The last time this signal appeared, XRP entered a prolonged accumulation phase, eventually leading to a substantial upward move.
Importantly, Steph notes that this pattern indicates a structural limit to downside risk, with long-term holders absorbing available supply. These signals tend to mark cycle lows, offering a glimmer of hope for those holding XRP.
ETF Inflows and Institutional Interest
Adding to the optimism, XRP ETFs continue to show positive momentum. With consistent inflows since the launch of Canary’s fund on November 13, these ETFs have amassed over $1.1 billion in net assets. Institutional interest remains robust, further underpinning the XRP price stability.
XRP Price Levels to Watch
Despite the positive signals, XRP still faces challenges. As noted by analyst CryptoXLarge, the price remains below a descending trendline on the weekly chart, situated around the 8 to 21 EMA levels. This week, XRP is testing the key support zone near $1.95, aligning with the Fib 0.5 level and the 89-week EMA, which has been a reliable support throughout the year.
A weekly close below this level could trigger a move towards the $1.60 support at the Fib 0.618. Conversely, a close above $1.95 could spark buying interest, potentially propelling the XRP price towards $2.30, and even $2.70.
Echoing this sentiment, analyst Crypto King suggests that reclaiming $1.98 might drive XRP as high as $3.66. Currently, XRP trades around $1.87, reflecting a slight uptick over the past 24 hours, according to CoinMarketCap data.
As the market watches closely, the combination of Stochastic RSI insights and ETF inflows positions XRP for a potentially exciting phase. Investors will be keen to see if these indicators indeed herald a new rally.
