• 19 June, 2024
News

XRP Hits Lowest RSI in History: What Does This Mean?

Renowned crypto analyst Egrag Crypto has shared a compelling observation on XRP’s current market condition. In a recent X post, the analyst highlighted that, XRP’s Relative Strength Index (RSI) on the monthly time frame is at its lowest point ever, suggesting a potentially bullish signal for the Ripple-backed cryptocurrency.

According to the analyst, the RSI curvature is beginning to turn upwards, indicating a possible rally ahead, with targets of 70 and potentially surpassing 80. However, this optimistic outlook is tempered by recent whale activity in the market.

Source: Chart by Egrag Crypto

However, a prominent XRP whale offloaded nearly 50 million tokens onto exchanges, creating significant supply pressure. According to Whale Alert, a platform tracking on-chain transactions, these large transactions have further impacted XRP’s tokenomics.

The whale, identified by the address Rzn, executed two major transactions within the past 24 hours. The first transaction involved 29.28 million XRP, valued at $15.40 million, transferred to Bitstamp. The second transaction saw 19.88 million XRP, worth $10.45 million, moved to Bitso. These moves have added to the circulating supply on exchanges, which can be a hurdle for XRP’s price appreciation in the short term.

XRP Set for Massive Breakout as Senate Poised to Pass Pro-Crypto Fit21 Bill

Despite the increased supply pressure, the historically low RSI and its upward curvature still drive optimism. The combination of technical analysis and whale behavior has made the market outlook for XRP particularly intriguing.

As of press time, XRP is trading at $0.5302, marking a slight 0.02% increase from the previous day. The 24-hour trading range has recorded lows of $0.5226 and highs of $0.5326, reflecting a relatively stable but cautious market sentiment.

XRP’s weekly chart shows a period of consolidation between the $0.51 and $0.54 price levels. The mixed signals from the RSI and whale activity highlight the complexity of the current market situation. On one hand, the lowest RSI in XRP’s history suggests a potential bullish turnaround. On the other hand, the substantial whale sell-offs indicate ongoing market uncertainty and pressure on XRP’s price.

Crypto enthusiasts and traders closely watch these developments, balancing the technical indicators with market actions. As XRP navigates these turbulent waters, its future price movements remain mysterious. The interplay between technical signals and market dynamics would determine whether XRP can overcome current challenges.

Bitcoin's Long-Term Holders Signal a Bull Run: Here's Why Read Previous

Bitcoin's Long-Term Holders Signal a Bull Run: Here's Why

Crypto Market Watch: AGIX, FLOKI, and 1INCH Updates and Trends Read Next

Crypto Market Watch: AGIX, FLOKI, and 1INCH Updates and Trends