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Following weeks of declining highs and ascending lows, XRP’s daily candlestick price chart is now indicating a signal that could determine the next significant movement. Although the token remains above vital horizontal levels around $2.13, technical information implies momentum is beginning to fade. A technical analysis of XRP’s daily RSI indicator presents insight into what lies ahead, and it’s not necessarily optimistic in the near term.
XRP RSI Analysis: Diminished Momentum Strength
According to an evaluation shared by crypto analyst CasiTrades on the social media platform X, XRP’s Relative Strength Index (RSI) has recently fallen beneath a highly regarded trendline that had been indicating higher lows since early April. The failure of this RSI structure, illustrated on the lower portion of the chart below, signifies a notable change in the short-term momentum dynamics for XRP.
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It indicates that even though the XRP price is maintaining a relatively stable position above the 0.5 Fibonacci level at $2.13, internal market strength has evidently diminished.
The RSI had been forming a compressing wedge pattern for weeks, similar to the price action’s contraction at the apex of a symmetrical triangle on the daily timeframe. This type of RSI trendline breakdown usually signals an impending increase in volatility, and as the analyst cautions, the release might coincide with a sharp drop to significant support before XRP rebounds.
It is common for significant price reversals to precede a push into lower support levels. In the case of XRP, the crypto analyst CasiTrades pointed out certain price targets to monitor for reversals should there be a decline in XRP price.
Support Levels At Stake: XRP Seeks Rebound Point
XRP’s price action is now entering a crucial evaluation phase, one that may lower its price before rebounding for the next substantial surge. Analysis from CasiTrades identifies a few demand zones where buyers have intervened. These zones are located at $2.01, aligning with the 1.236 Fibonacci extension, the $1.90 price point, and $1.55, corresponding with the 0.618 retracement level from a recent rally.
These levels possess sufficient liquidity, and until XRP surpasses and retains value above $3, these support levels will always be relevant. Should XRP encounter one of these support levels clearly and demonstrate a rapid V-shaped recovery, it would indicate the market has identified its pivot.
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Nonetheless, if XRP approaches these levels and hesitates or rebounds prematurely, that could result in a final shakeout, forging a deeper low before the genuine reversal initiates. Regardless, the RSI breakdown has now shifted short-term risk to the downside, at least until the price confirms a significant reclaim above $2.50 and $3.
At the moment of writing, XRP is trading at $2.11, reflecting a 2% decline in the last 24 hours.
Featured image from Picjumbo, chart from TradingView
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