XRP is showing signs of life after getting hammered over the past several weeks. Multiple technical indicators suggest the token could stage a 25% relief rally in the coming weeks.
The key signal: XRP 20-week EMA is about to cross below its 200-week EMA, forming what traders call a death cross on the weekly chart. That sounds scary, but history says otherwise. After the previous two occurrences in 2019 and 2022, XRP rallied roughly 20% and 82.7% respectively.
A similar mean-reversion move from current levels near $1.13 would target the $1.39-$1.40 area. That lines up with a cluster of short liquidation liquidity worth around $236.5 million sitting just above the current price, which could act as a magnet.
XRP weekly RSI is hovering just above the oversold threshold of 30. When readings get that low, it usually means sellers are running out of steam.
Analyst Cryptollica posted a longer-term view showing what looks like a giant ascending channel connecting macro lows since 2017. The current price is sitting above the lower boundary near $0.75. His take: in 13 years, XRP has only been this oversold three times. Both previous occasions marked major accumulation phases before big moves higher.
The upper boundary of that channel puts a long-term target near $8 if the pattern repeats. But XRP could still retest the lower boundary first before any broader recovery kicks in.
Nothing is guaranteed in crypto. But the setup is interesting enough to warrant attention.
