XRP Shows Resilience: Oversold Signals and Potential Upside After Profit-Taking
XRP jumped to $2.41 on Jan 6, 2026, then underwent a multi-day pullback to $2.06 driven by profit-taking. Technical indicators show short-term oversold conditions—stochastic RSI dipped below 25 on the three-week XRP/USDT chart—drawing attention because similar readings preceded strong rallies in 2023 and 2024. The weekly RSI has crossed above its moving average, signaling a potential momentum shift from sellers to buyers. Since mid-November 2025, XRP traded in a $1.77–$2.41 range; the recent rally pushed price above the daily 50-day moving average, a former resistance. Key levels: immediate resistance around $2.56, with upside targets near $3.00 and $3.50 if that level is cleared. Corporate interest persists—Evernorth is exploring liquidity and treasury use cases with Doppler Finance—adding fundamental support. Analysts caution that historical repeats are not guaranteed; investors should consider volatility and conduct their own research.
Bullish
Bullish. The combination of short-term oversold readings on stochastic RSI and a weekly RSI crossing above its moving average suggests technical conditions that have historically preceded upward moves for XRP. The recent break above the daily 50-day moving average removes a key short-term resistance and positions price to test $2.56; a successful breach would open technical targets around $3.00–$3.50. Corporate interest from Evernorth exploring liquidity/treasury use cases adds fundamental support, which can sustain rallies beyond pure technical rebounds. Short-term impact: likely a relief bounce or recovery rally as traders respond to oversold conditions and buy dips; expect elevated volatility and quick upside attempts. Medium-to-long-term impact: if momentum and fundamental interest persist, XRP may sustain a bullish trend, but confirmation depends on holding above support (near the 50-day MA) and macro crypto market direction. Risks: profit-taking, failure to clear $2.56, or broader market weakness could negate the bullish setup. Historical parallels: prior stochastic RSI oversold levels in 2023 and 2024 preceded large rallies, but past performance is not guaranteed.