XRP Enters Oversold Zone, Could See Short-Term Relief Bounce

Beincrypto reports XRP's sell-off pushed the token into oversold territory, a condition that often signals potential selling exhaustion and short-term relief bounces.

On-chain profit-to-loss volume shows losses have dominated XRP trading activity over the past 20 days, with many investors selling during brief price upticks and loss-driven selling accelerating over the past week. A large portion of XRP transfers occurred below investors’ cost bases, which the outlet says reflects capitulation by weaker hands.

The Money Flow Index, tracking buying and selling pressure using price and volume, slipped into oversold territory within the last 24 hours; similar oversold readings in the past have created tactical entry points for buyers, though this does not guarantee a trend reversal.

XRP trades near $2.14 at the time of writing and has established support above the 23.6% Fibonacci level. A confirmed bullish shift would require flipping the 61.8% Fibonacci level near $2.27 into support to open a path toward $2.41, while failure to hold 23.6% could see a retreat to $2.03 and possibly below $2.00, which would likely extend the decline and invalidate the bullish thesis. This analysis is for informational purposes only and should not be considered financial or investment advice.

Key Topics

Crypto, Xrp, Money Flow Index, Fibonacci Retracement, Santiment, Tradingview