Ripple (XRP) Key Indicator Plummets to 3-Month Low: Is a Major Price Rebound Imminent?
XRP's crucial metric hits lowest level since June—and traders are betting this signals an explosive comeback.
The Compression Point
Watch what happens when a key indicator gets squeezed to extremes. Ripple's trading volume just collapsed to levels not seen since summer, creating what analysts call a 'coiled spring' scenario.
Market Mechanics at Play
Low volume typically precedes massive price movements. With XRP trading in its tightest range in months, the setup suggests pent-up energy waiting for a catalyst. Institutional wallets have been quietly accumulating during the stagnation.
The Regulatory Overhang
Never underestimate how regulatory uncertainty can freeze action. But when clarity finally breaks—watch out. The SEC saga continues to create artificial pressure that could unleash dramatically.
Timing the Bounce
History shows these compression patterns resolve within weeks. The 3-month low indicates we're approaching critical mass. Whether it breaks up or down depends on which side runs out of patience first.
Remember: markets move fastest when everyone's looking the other way. And right now? Most traders are obsessed with Bitcoin ETFs—leaving XRP primed for a surprise move. Because nothing makes Wall Street more uncomfortable than a digital asset that actually facilitates cross-border payments instead of just speculating on them.
Just a ‘Coffee Break?’
Ripple’s XRP followed the overall correction of the crypto market and nosedived to $2.78 a few hours ago. This represented the lowest point witnessed in the past two weeks. Shortly after, the bulls managed to reclaim some lost ground, and XRP currently trades at around $2.85, or a 5% decline on a daily scale.
The asset’s market cap plunged below $170 billion, which allowed Tether’s USDT to become once again the third-biggest cryptocurrency with a capitalization of over $172 billion.
While things might not look dreamy for the XRP Army, there is one important metric that hints a price rally might be knocking on the door. This is the Relative Strength Index (RSI), which earlier today dropped below 20 for the first time since June 22.
The indicator measures the speed and magnitude of recent price changes and is used by traders to spot reversal points. Ratios below 30 are typically seen as bullish territory as they suggest the asset is oversold and poised for a price increase. On the contrary, anything above 70 could be interpreted as a pullback signal.
XRP’s latest price drop did not scare some of its hard-core fans. The X user John Squire (who is among the most devoted advocates of the asset) described the correction as “a coffee break,” reminding that investors have survived much more severe crashes, including the one from 2018. It is interesting to note that he made the same comment towards the end of July this year after another setback.
The Key Level to Hold
Just a few hours ago, EGRAG crypto (another X user who often touches upon XRP) suggested that the asset could preserve its bullish setup as long as it holds the short-term support at $2.77 and the long-term one at $2.65.
The analyst, going on X as Erica Hazel, revealed that the vast majority of traders dealing with the asset on Binance have opened long positions. She also said the exchange outflows over the past 48 hours have surpassed $66 million, indicating that investors have switched to self-custody methods, thus reducing the immediate selling pressure.
Hazel set $3.65 as the next key resistance level, claiming that if broken to the upside, the bulls may take “full control.”
