XRP Shows Signs of Reversal Despite Significant Losses

XRP’s price has seen a drop of 15% within a week and is now showing strong and bullish revesal signals. Last week’s significant downturn was the result of a price surge on the paternal chart with significant gains. This price movement broke down weak hands and the asset has now gone towards a region of strong accumulation and has built the base for the next leg higher. Though the On-chain and technical analytics have selling pressure seriously considered, the worst seems to be behind us.

It is most often the case with healthy markets for there to be a large price drop and shed of speculative excess with the price action to be followed with clear signals of a reversal to be trending upwards over the long-term.

The Most Immediate Positive Signal

No support line has been drawn for the price and the most recent significant bearish action within the weekly price chart has the most recent and ultimately significant long-term bearish trend line price touched when support was found and rejected strong buying action at the price level. The price of 0.4470 was validated when long-term investors and large holders entered the price line marking the surrounding region when a base demand and support became historical.

The investor base conviction is further strengthened by the abrupt and unequivocal dismissal of prices beneath this threshold. The market has successfully acknowledged and defended a critical level on the chart, converting what could have been a potential catastrophe into a low-risk re-entry opportunity for patient investors who have been waiting for the correction to complete.

The RSI is indicative of the exhaustion of selling

The second prominent indicator is from the Relative Strength Index (RSI) which is a well-known oscillator of the market momentum. The XRP price decreased by 15% over the week and the RSI has now gone into the lower levels of the neutral zone which signifies that the selling pressure is subsiding, and this is indicative of selling exhaustion.

This suggests that the rate and degree of the downward price movement are lessening. The current RSI level indicates that the momentum has moderated and a reading deep into the oversold zone won’t be observed. There is a closure of the selling pressure and the selling has been exercised to its full extent causing the market to lack further immediate selling, allowing for a gradual market regain by buyers. The market is showing strong technical fundamentals in favor of XRP’s consolidation and the subsequent price increase, particularly the hard bounce from structural support and an RSI which is indicating a selling pressure exhaustion.