XRP RSI Plummets to 4-Month Low as Price Dips — Short-Term Rebound Possible
XRP fell to around $1.11 amid a broad market crash, touching its lowest level since November 2024 and briefly shaving market capitalization to roughly $70 billion. The token’s Relative Strength Index (RSI) plunged to as low as 13 before recovering to about 40, signaling a recent oversold condition that can precede short-term rebounds. Price later recovered toward $1.40. Spot XRP ETF net inflows remained positive over recent days, indicating continued institutional interest, while BTC and ETH ETFs saw heavier outflows. On the downside, analysts and on-chain data point to risks: social commentators warned of further declines (targets between $1.00 and below $0.50), and CryptoQuant shows Binance exchange reserves rising to ~2.73 billion XRP — often interpreted as a precursor to selling. Key indicators traders should watch: RSI levels (oversold/strengthening), ETF netflows, exchange reserves (Binance), and price support near recent lows. Short-term trading opportunities may arise from the oversold bounce, but elevated exchange inflows and bearish forecasts suggest caution for position sizing and stop placement.
Neutral
The news presents mixed signals. Bullish drivers: XRP’s RSI hit deeply oversold levels (as low as 13) and has recovered toward 40, which historically can precede short-term rebounds; spot XRP ETF net inflows indicate ongoing institutional demand, supporting near-term bids. Bearish drivers: rising XRP reserves on Binance (~2.73B) suggest potential pre-sale accumulation on exchange, and commentators predict further downside to $1.00 or below $0.50. Price volatility and the broader market crash increase tail risk. Short-term implication: potential bounce/trading opportunities from oversold conditions — suitable for tactical, size-limited trades with tight risk controls. Long-term implication: sustained recovery requires continued ETF inflows and declining exchange reserves; otherwise, selling pressure could extend losses. This combination of opposing indicators warrants a neutral classification — traders should watch RSI, ETF flows, and exchange reserves for confirmation before taking directional positions.