Why XRP’s Price Went on a Little Holiday: A Deep Dive into the Reset Phase

by
  • XRP is currently lounging around $1.567, with an RSI that’s practically taking a nap at 27.03. Oversold? Yes, please! Get ready for a potential short-term bounce, or at least a polite little jig.
  • EGRAG CRYPTO, our favorite crypto oracle, says we’re in a reset phase-think of it as a digital spa day rather than a full-on identity crisis-with the 45-50 RSI zone historically being the comfy couch to land on.
  • A recent spike of 74M in volume is like the big guy in the club giving away free drinks-large holder distribution, anyone? Don’t forget that $1.525 support level; it’s the bouncer keeping everything in check!

XRP has decided it’s time for a dramatic downward spiral, trading around $1.567 on the daily chart. It’s dropping lower and lower, like a soap opera character who just can’t catch a break. Seriously, these consecutive lower lows and lower highs are signaling sustained bearish momentum-cue the sad music.

As price action flirts with the lower Bollinger Band at $1.5259, intense selling pressure is as obvious as a bad haircut. But hang on! Technical indicators whisper sweet nothings about the market nearing oversold conditions. Who knew drama could be so technical?

Technical Indicators Show Extreme Oversold Territory

The Relative Strength Index (RSI) is sitting pretty at 27.03, well below the critical 30 threshold. That’s like finding out your favorite ice cream flavor is out of stock-devastating! This marks deeply oversold conditions we haven’t seen in ages, which is comforting in a weird way.

With the 14-day RSI average lounging at 35.65, it’s clear we’re under some serious downward pressure. Bollinger Bands are revealing all sorts of juicy details about the current market structure-it’s practically a tell-all book!

The upper band is flexing at $2.1558 while the middle SMA hangs around $1.8409. XRP is trading significantly below this middle band-someone send help! The slight flattening of the lower band hints at some possible short-term consolidation ahead. Maybe it’s just tired?

Recent volume data adds another layer to this soap opera. A spike to approximately 74 million coincides with strong bearish candles-definitely not the birthday cake we were hoping for. This confirms that selling pressure is significant and deliberate, much like that friend who insists on telling everyone their business.

Expert Identifies Full Reset Phase

Crypto analyst EGRAG CRYPTO shared what can only be described as a macro view of XRP’s RSI behavior. Apparently, the RSI reached the 50 zone faster than a cat can knock something off a shelf. Historically, this level kicks off violent bounces in XRP price action-so brace yourselves!

According to EGRAG CRYPTO, the current movement is more about large holders doing the cha-cha rather than retail panic. Instead of running for the hills, market makers seem to be conducting liquidity sweeps, pushing prices deeper. Classic move, right?

RSI (Macro View) 👇:

👉I honestly didn’t expect the RSI to reach the 50 zone this fast.

👉Historically, the 50 level triggers violent bounces.

👉But market makers don’t play fair-they push deeper to complete liquidity sweeps.

👉What this tells me:▫️ Downside momentum…

– EGRAG CRYPTO (@egragcrypto)

The analyst describes this RSI behavior as a “Full Reset Phase.” Not to be confused with a meltdown! Historical cycles show the 45-50 macro support band has never broken-a solid safety net. Every time it compresses at this zone, momentum expansion follows like a surprise party!

EGRAG CRYPTO has kindly outlined specific markers for tracking the reset. The RSI topped near 80 after the recent run-normal cooldown, folks! The current position in the 45-50 support band keeps structural integrity intact. But if we dip below 43, it might be time to panic a little.

Support Levels and Recovery Scenarios

Immediate support sits between $1.525 and $1.530, aligning with the lower Bollinger Band. Recent price lows cluster around this zone like a bad sitcom cast. A breach could trigger further downside movement-yikes!

Recovery requires substantial effort from bulls; they need to reclaim $1.84, the middle Bollinger Band, to shift momentum. The upper band at $2.155 represents a longer-term resistance target-think of it as the top shelf you can’t quite reach.

The analyst’s framework suggests weak hands will exit during these compressions, like people leaving a bad party. Once distribution completes, expansion typically follows. So, let’s keep our fingers crossed!

EGRAG CRYPTO reminds us that cooling does not equal collapse in this scenario. Understanding the difference between reset and reversal is key to deciphering this rollercoaster ride. According to the analyst, the structure stays intact above the 43 RSI level. So, stay tuned, crypto enthusiasts-this isn’t over yet!

The crypto community is watching these technical levels closely as XRP navigates this volatile period. Grab your popcorn!

Read More

2026-02-04 22:21