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XRP Technical Analysis: Oversold RSI Signals Potential Rebound as $1.88 Support Holds Firm

XRP Technical Analysis: Oversold RSI Signals Potential Rebound as $1.88 Support Holds Firm

Author:
XRP News
Published:
2025-12-19 08:03:06
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As of December 19, 2025, XRP is exhibiting compelling technical signals that suggest a potential trend reversal may be on the horizon. The cryptocurrency's weekly Relative Strength Index (RSI) has plunged to a reading of 33, a level that has historically coincided with significant market bottoms and subsequent bullish recoveries. This oversold condition is flashing a classic contrarian buy signal for attentive investors and traders. Currently trading near the $1.88 price level, XRP has experienced a modest daily decline of 1.41%, yet it continues to demonstrate remarkable resilience by holding above a crucial support zone. This price action, combined with the deeply oversold RSI, indicates that selling pressure may be exhausting itself, setting the stage for a potential upward correction. The market's underlying strength is further evidenced by XRP's substantial liquidity, with 24-hour trading volumes consistently exceeding $3.5 billion. This robust trading activity provides a solid foundation for price discovery and suggests sustained institutional and retail interest despite recent price weakness. Prominent crypto analyst Good Evening Crypto has highlighted this technical setup, noting that the current RSI reading has frequently preceded significant bullish bounces in XRP's historical price action. The convergence of a historically reliable oversold indicator, strong volume support, and the defense of a key price level creates a compelling narrative for a potential rebound. For market participants, this scenario presents a classic risk-reward opportunity, where the downside appears limited by proven support, while the upside potential is amplified by the coiled-spring effect of an oversold market condition. The coming weeks will be critical in determining whether this technical setup translates into a sustained recovery rally for XRP.

XRP Price Prediction: Oversold Signals Suggest Potential Rebound as Key Support Holds

XRP is flashing oversold reversal signals as its weekly Relative Strength Index (RSI) drops to 33, a level historically associated with market bottoms. The cryptocurrency is currently trading near $1.88, down 1.41% on the day, while maintaining robust liquidity with over $3.5 billion in 24-hour trading volume.

Crypto analyst Good Evening Crypto notes the RSI reading could precede a significant bounce, drawing parallels to 2017-2018 when XRP rallied from $0.20 to $3.40 after similar conditions. The $1.83-$1.90 zone has emerged as critical support, with traders watching for confirmation of a trend reversal.

While historical patterns don't guarantee future performance, the current technical setup has put XRP on the radar of momentum traders. The asset's ability to hold above key support levels suggests accumulation may be underway despite recent downward pressure.

XRP Eyes $2 Threshold Amid Pivotal Support Test

XRP hovers at $1.90, down 4.09% in 24 hours, as traders gauge whether it can reclaim $2 by December’s end. The token’s recent stability above the $1.85–$1.90 support zone suggests guarded optimism, though resistance looms.

Ripple’s rumored U.S. National Trust Bank designation fuels bullish sentiment. Technical indicators point to range-bound action—a move to $2 WOULD likely signal a tactical rebound rather than sustained momentum.

Market participants watch for sustained holding above $1.85 to confirm short-term upside potential. Cross-border payment demand and institutional interest remain key drivers for XRP’s valuation.

XRP Nears Oversold Territory as Weekly RSI Hits 33, Testing Key Support at $1.83

XRP’s weekly Relative Strength Index (RSI) has plunged to 33, entering near-oversold conditions that historically precede reversals. The cryptocurrency now hovers around $1.83, trading below critical weekly moving averages that have flipped to resistance.

Market observers note the $1.38–$1.40 zone as a decisive long-term support level. The current RSI reading mirrors exhaustion phases seen during past pullbacks, though it doesn’t guarantee an immediate rebound. Broader crypto markets show tentative stabilization after weeks of volatility, with traders monitoring whether XRP can attract buyers at these levels.

Chart analysis reveals fading momentum: XRP’s late-2024 rally breached historical averages but met aggressive profit-taking NEAR Fibonacci retracement levels. The absence of higher highs suggests distribution rather than accumulation—a bearish divergence that warrants caution.

Institutional Interest Grows In XRP Amid Market Chaos

XRP-backed financial products have surpassed $1 billion in assets under management, marking a significant milestone. Inflows have accelerated in recent weeks, driven by institutional investors seeking alternatives to Bitcoin and ethereum ETFs. This trend contrasts sharply with outflows elsewhere, signaling a strategic shift toward historically stable assets.

Sui Chung, CEO of CF Benchmarks, attributes XRP's appeal to its decade-long market presence. "Investors gravitate toward familiarity," he notes. Since November 14, XRP ETFs have attracted over $423 million in net inflows—a quiet but decisive reallocation in crypto portfolios.

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