XRP may be nearing a pivotal turning point as several technical signals point to the early stages of a potential bottoming process. After a prolonged pullback and cooling momentum, analysts are observing tighter price compression and historically extreme oversold readings that often precede larger directional moves. If the current market structure holds and buying interest returns, the setup could act like a “slingshot” that prepares XRP for a meaningful recovery over the coming months.
Monthly chart: reset, not collapse
XRP is trading around $1.35—a level some see as a sign of weakness—but crypto analyst Diana argues the monthly chart looks more like a high-timeframe reset after a major rally than an outright market collapse. The broader trend still shows constructive structure, and the $1.30–$1.35 band is behaving as a key support zone where price is beginning to stabilize. Momentum has cooled, yet selling pressure appears to be waning; the resulting compression could foreshadow either a decisive breakout or a steeper breakdown depending on whether demand returns.
Supply dynamics: why a rally could be sharper than expected
Diana also challenges the common narrative that XRP’s large total supply constrains upside. Much of the circulating supply is locked, stored off exchanges, or held by long-term investors who are unlikely to sell on short notice. That tighter effective float means that when demand reappears, price moves can be larger and quicker than some expect.
Potential targets and risks
If XRP can hold the $1.30–$1.35 support and reclaim higher resistance zones, analysts say an initial target back toward $3 becomes plausible, with a stronger cycle extension opening the door to a $5–$8.50 range. Conversely, a decisive breakdown below current support would likely force a deeper reset before any sustainable bullish continuation.
Weekly RSI hits historically oversold territory
Adding to the backdrop, analyst EGRAG CRYPTO notes that XRP’s weekly Relative Strength Index (RSI) is entering what may be the most oversold readings in the asset’s history. Similar extremes occurred near major market lows in 2014, 2015, 2018, 2020 and 2022. Historically, those readings marked the start of a bottoming phase—often characterized by a final liquidity sweep and a period of sideways accumulation—rather than an immediate and clean reversal.
What this means for traders and investors
An oversold weekly RSI doesn’t guarantee an instant bottom; instead, it typically signals a transition into the lower end of a cycle where accumulation becomes attractive for longer-term holders. Many experienced investors use such windows to build positions gradually instead of trying to time the absolute low. The critical question now is whether the current price action represents a risky short-term entry or an opportunity to accumulate for a potential multi-month recovery.
Bottom line
Technical evidence points to a high-probability bottoming environment for XRP—conditional on support holding and demand returning. Traders should watch the $1.30–$1.35 zone, volume and whether price breaks out of the current compression. As always, outcomes can vary and risk management is essential.
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