XRP Stochastic RSI Touches 0.0 for the Second Time in History

Crypto analyst Skipper has noted a noteworthy event for XRP as it trades below the psychological threshold of $2. This development could indicate that selling pressure on the altcoin is diminishing, while exchange-traded funds (ETFs) continue to exert buying pressure through sustained inflows.

Key Takeaways

XRP’s stochastic RSI has reached 0.0 for only the second time in its history, potentially signaling reduced selling pressure.
The cryptocurrency is down 35% this quarter and 10% this year, marking its first annual loss since 2022.
Analyst Skipper draws parallels to 2020's market conditions, suggesting a possible recovery for XRP.
XRP ETFs are experiencing consistent net inflows, holding assets worth $1.25 billion.
Predictions for an XRP supercycle next year are circulating, with some forecasts suggesting prices could hit $10.

XRP

XRP’s Stochastic RSI Indicates Potential for Recovery

In a recent social media post, analyst Skipper pointed out that XRP’s stochastic RSI has dropped to 0.0 for just the second time ever. This significant trend comes amid a challenging period for XRP, which has seen a 35% decline in the current quarter and a 10% drop so far this year, marking its first annual loss since 2022. Currently, XRP trades below the crucial $2 barrier.

Skipper referenced insights from fellow analyst Steph, who highlighted that XRP's stochastic RSI reaching 0.0 on the three-week chart could be a hopeful indicator. This situation has only occurred once before, in 2020, just before XRP hit its low at $0.28 during the Terra LUNA incident.

The analyst indicated that, while this could signify reduced selling pressure for XRP, a rapid price recovery might not be imminent. He pointed out that XRP experienced a prolonged period of stagnant prices in 2022 before it finally rebounded. It's essential to note that a decline in the stochastic RSI often signifies low points in market cycles rather than short-term trading positions.

XRP XRP trading at $1.86 on the 1D chart | Source: XRPUSDT on Tradingview.com

Continued Buying Pressure from XRP ETFs

Despite the cooling selling pressure, XRP receives substantial buying interest from ETFs specifically dedicated to it. This is a positive sign for the altcoin, as data from SoSo Value indicates that these funds have recorded daily net inflows since their inception, currently holding net assets valued at $1.25 billion—almost 1% of XRP’s market capitalization.

Predictions for XRP Supercycle Next Year

YoungHoon Kim, a self-identified influencer in the crypto space, has indicated on social media that an XRP supercycle is expected next year. Kim previously suggested that the altcoin could potentially soar to $10 or beyond, marking new all-time highs (ATHs). This optimistic outlook seems to stem from his belief that “all crypto will eventually align with XRP.”

In contrast, analyst Crypto King emphasized the importance of patience as XRP aims to reclaim pivotal price levels. He noted that the price is currently just above the critical support level of $1.85. A strong rebound and the recovery of the $1.98 level would indicate a shift in momentum. If this level is surpassed, the next target could be at the resistance level of $2.58, with potential for further upward movement to around $3.66.

As of now, the price of XRP is approximately $1.86, reflecting a decline over the last 24 hours, based on data from CoinMarketCap.