XRP Slingshot Setup Gears Up as Market Approaches Potential Bottom

XRP appears to be nearing a significant turning point, with technical indicators hinting at a possible bottoming phase. Analysts note that rising price compression and historically oversold conditions could pave the way for a major price movement. If demand gradually increases and market structures remain intact, XRP could be set for a strong rebound in the coming months.

Key Takeaways

XRP is trading around the $1.35 mark, perceived by traders as a sign of weakness, yet a reset rather than a collapse may be underway.
The price zone of $1.30–$1.35 serves as critical support, with diminishing selling pressure, suggesting potential for a breakout.
Current market conditions indicate XRP’s weekly RSI is entering historically oversold territory, signaling a possible turning point.
If these favorable conditions continue, XRP could see a price target of $3 or even range between $5–$8.50.
Investors are closely monitoring whether now is the right time to enter the market or if they should consider long-term accumulation strategies.

XRP

XRP's Monthly Chart Suggests a Reset, Not a Crash

Currently, XRP is trading near the $1.35 level, which many in the market view as indicative of weakness. However, crypto analyst Diana believes the situation isn't as negative as it seems. She suggests that the monthly chart reflects more of a high-timeframe reset following a significant rally, rather than a total market collapse.

Looking at the broader trend, the overall structure remains positive. The $1.30–$1.35 area is acting as crucial support, where the price appears to be stabilizing. Though momentum is slowing, any selling pressure is starting to wane, and this current compression phase may ultimately lead to a powerful breakout or breakdown.

XRP Source: Chart from Diana on X

Diana further pointed out that many traders often worry about XRP's large total supply, believing it limits significant price movement. However, the truly tradable amount of XRP could be more limited than commonly assumed. A substantial portion of the supply is locked up, stored off exchanges, or held by long-term investors who are reluctant to sell. This means that a spike in demand could quickly drive prices upward.

If XRP manages to maintain its support zone and reclaim higher resistance levels, the market could aim for a return to $3, and a stronger cycle extension could even open the possibility of reaching between $5 and $8.50. Conversely, a clear breakdown below this support level could indicate a need for a deeper reset before any further bullish trends can develop.

XRP's Weekly RSI Hits Notable Oversold Levels

Crypto analyst EGRAG CRYPTO recently pointed out that XRP’s weekly Relative Strength Index (RSI) is now reaching what could be one of the most oversold levels in its history. According to the analyst, this zone often appears near significant turning points, catching the attention of many traders and long-term investors.

Historically, such conditions were noted in 2014, 2015, 2018, 2020, and 2022, where each occurrence preceded a major macro low and subsequent price shifts.

EGRAG emphasized that just because XRP has entered this oversold territory does not guarantee an immediate market bottom. Typically, this indicates that the market is transitioning into a bottoming phase, which often involves a final liquidity sweep followed by sideways accumulation before a recovery begins.

Thus, many seasoned investors prefer accumulating during such downturns instead of trying to time the absolute bottom perfect. As XRP’s weekly RSI is nearing this critical level once again, the vital question remains whether this moment presents a risky entry point or offers a valuable long-term accumulation opportunity.

XRP XRP trading at $1.38 on the 1D chart | Source: XRPUSDT on Tradingview.com