Crypto analyst Steph highlighted an “interesting” chart, which it has already led to. a rise in XRP prices. This came as the analyst also suggested that the altcoin could be forming a bottom in preparation for the next leg up.
Analyst explains why this chart is interesting for XRP price
In a MessageSteph highlighted the 3-week XRP price chart, stating that it was “interesting” for a reason. It revealed that the Stochastic Relative Strength Index (RSI) fell to 0.00 over a 3-week period, which is extremely rare and has only happened once before, in 2022. bear market down.
Steph further explained that over such a long period, this indicator only reaches zero when selling pressure is completely sold out, which is positive for the price of XRP. The analyst added that this means the bearish momentum has dried up, although he cautioned that this does not mean the price must reverse instantly.
Steph noted that the last time this signal appeared, the XRP price entered a long accumulation phase before the next major upward move. As such, the analyst asserted that this once again suggests that downside risk is structurally limited and that long-term holders absorb the supply rather than distribute it. He further noted that these signals tend to mark cycle lows rather than short-term trades.
THE XRP ETF Also score a positive for XRP price as these funds maintain their streak of entries. These funds have seen daily inflows since the Canary fund launched on November 13. As a result, they now boast net assets of over $1.1 billion, even as XRP continues to see significant demand from institutional investors.
XRP remains below key levels
In a MessageCryptoXLarge said that on the weekly chart, XRP price remains below the descending trendline around EMA levels 8 to 21. It further noted that this week, the price is trying to break below the key support area around $1.95, which corresponds to the 0.5 Fib level and the 89-week EMA, which is support that has held throughout the year.
CryptoXLarge said that a weekly close below this level could increase the likelihood of a move towards the $1.60 support, which is the .618 Fib. Meanwhile, a weekly close above $1.95 could boost buying interest, which could trigger relief. XRP Price Rise towards $2.30 then $2.70. Crypto analyst Crypto King also echoed a similar sentiment, stating that a recovery of $1.98 could eventually send the altcoin as high as $3.66.
At the time of writing, the price of XRP is trading at around $1.87, up over the last 24 hours, according to data. data from CoinMarketCap.
Featured image of Adobe Stock, chart from Tradingview.com