XRP, Weekly RSI 'Lowest' in 13 Years... Hits Historical Bottom, Poised for Sharp Rebound

▲ XRP, Nasdaq/AI generated image

Analysis suggests that XRP's weekly Relative Strength Index (RSI) has plunged to an all-time low in 13 years, reaching a historical bottom. With extreme oversold signals appearing, market attention is focusing on a potential mid-to-long-term rebound.

According to crypto-focused media outlet BeInCrypto on September 17 (local time), XRP's weekly Relative Strength Index dropped to 28.5, marking its lowest level since 2013. A drop in the RSI below 30 typically signifies that an asset has technically entered an extremely oversold condition. It is explained that in situations where selling pressure has reached its limit, such indicator movements have invariably been followed by explosive price rebounds in the past.

The divergence between technical analysis indicators and price is becoming clear. In 2017 and 2020, after the weekly Relative Strength Index approached the oversold region, strong buying pressure flowed in, leading to a major bull market. Analysts diagnose that the current extreme indicator distortion proves the exhaustion of selling power, and that the upside potential is much greater than the downside risk in this phase.

However, overall market liquidity conditions and macroeconomic variables are still considered significant factors. Regulatory uncertainties, such as the aftermath of the US Federal Reserve's (Fed) benchmark interest rate hikes and the rejection of a US cryptocurrency market structure bill, are overlapping, limiting short-term price recovery momentum. There is also an existing view that a short-term bottoming-out trend could continue until a clear inflow of spot buying from large investors is confirmed.

Market experts predict that whether XRP defends the short-term support level around $1.30 and quickly recovers its weekly Relative Strength Index above the 30-mark will be a key criterion for a full-fledged trend reversal in the future. As the lowest indicator in 13 years provides strong technical grounds for a bottom formation, it remains to be seen whether this will act as a mid-to-long-term buying opportunity.

[Article Key Summary]

-XRP's weekly Relative Strength Index dropped to 28.5, recording an all-time low in 13 years since 2013.

-Extreme oversold signals are technical bottom patterns that appeared just before massive price surges in past cycles.

-Even amidst macroeconomic headwinds, the defense of the $1.30 support level and the recovery of the indicator are considered watersheds for a trend reversal.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*