Analyst Predicts XRP Price Surge:Charts Indicate Potential Rally

Crypto analyst Steph has highlighted an “interesting” chart that previously correlated with an increase in XRP's price. He noted that the altcoin could be establishing a bottom ahead of the next upward movement.

Key Takeaways

Analyst Steph highlights a rare Stochastic RSI signal indicating potential buying pressure for XRP.
The previous instance of this signal led to a significant price increase after an accumulation phase.
XRP ETFs show strong inflows, accumulating over $1.1 billion in assets, indicating demand from institutional investors.
XRP is currently testing critical support levels, with potential upside if the price closes above $1.95.

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Understanding the Chart's Implications for XRP Price

In a recent post on X, analyst Steph shared insights into the 3-week XRP price chart, describing it as “interesting” for a particular reason. He pointed out that the Stochastic Relative Strength Index (RSI) has reached a rare level of 0.00 within a 3-week timeframe. This occurrence is particularly noteworthy as it has only happened once before, during the bottom of the 2022 bear market.

Steph elaborated that such a high timeframe indicator typically reaches zero only when selling pressure has fully dissipated, which is a positive sign for XRP's price trajectory. He cautioned, however, that this doesn't guarantee an immediate price reversal.

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Source: Chart from Steph on X

The analyst also observed that the previous instance of this signal led to a lengthy accumulation phase before XRP experienced a significant upward movement. This pattern suggests that the risk for further downside may be limited, as long-term holders are more inclined to absorb supply rather than sell off their holdings. He noted that such indicators usually signal cycle lows rather than short-term trading opportunities.

The activity of XRP ETFs also supports a positive outlook for the altcoin. These funds have enjoyed consistent inflows since the launch of the Canary’s fund on November 13, amassing over $1.1 billion in net assets, reflecting strong ongoing demand from institutional investors.

Current XRP Price Trends and Key Levels

In another post, CryptoXLarge pointed out that, according to the weekly chart, XRP's price is still below the descending trendline positioned around the 8 to 21 EMA levels. This week, the price is attempting to remain above a critical support zone near $1.95, which corresponds with the Fib 0.5 level and the 89-week EMA, a support level that has held firm throughout the year.

According to CryptoXLarge, should the price close below this crucial $1.95 level, it could heighten the likelihood of a downturn towards the $1.60 support, representing the Fib 0.618 level. Conversely, a weekly close above $1.95 could enhance buying interest, possibly triggering a relief rally that could see the price rise towards $2.30 and even $2.70. Analyst Crypto King echoed these sentiments, noting that regaining $1.98 could potentially elevate the altcoin as high as $3.66.

At the time of writing, the XRP price stands at approximately $1.87, reflecting an increase over the last 24 hours, as reported by CoinMarketCap.

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XRP trading at $1.88 on the 1D chart | Source: XRPUSDT on Tradingview.com