Analyst Calls "Game Over" for XRP: Is a Historic Rebound on the Horizon?
A recent market-wide cryptocurrency crash sent XRP tumbling to $1.2 before a swift rebound, leaving many investors questioning the digital asset's future. However, prominent crypto analyst Steph (Steph_iscrypto) has offered a compelling technical analysis, suggesting that while the immediate outlook seems grim, the current market structure could mirror a past cycle that preceded a significant recovery.
XRP's Unsettling Historical Parallel
According to Steph's analysis, XRP's current weekly chart structure eerily echoes the 2020-2021 cycle, which ultimately led to a 74% price correction. A key indicator of this potential downturn is a bearish Relative Strength Index (RSI) divergence, where the price records higher highs but the RSI shows lower highs, signaling a weakening in buying momentum despite apparent price gains. This pattern, historically, has indicated an exhaustion of bullish strength and the onset of corrective phases. The recent 65% correction, which seemingly found a bottom over the past weekend, aligns with this historical pattern, having lasted over 80 days—a duration strikingly similar to the 2021 correction. Macroeconomic pressures, particularly a substantial US tariff announcement on Chinese imports, exacerbated the recent crash, leading to record-breaking liquidations for XRP.
The Path to Recovery: Key Levels and Bullish Outlook
Despite the severe correction, Steph believes that XRP has effectively "flushed out" excessive leverage and cleared critical liquidity zones around the $2.25 mark. This cleansing event, in the analyst's view, could set the stage for a potential rebound towards higher liquidity targets and even new all-time highs above $4. However, achieving sustained bullish momentum and confirming a true bottom hinges on XRP reclaiming several crucial price levels. The asset currently sits at a technical crossroads, having fallen below its long-standing support range of $2.65 to $2.84. A weekly close above at least $2.65 is deemed essential to confirm the end of the corrective phase and the start of a recovery. Furthermore, the 50-week Simple Moving Average (SMA), currently positioned around $2.45, represents a critical line in the sand. A weekly close below this SMA traditionally signals the commencement of a bear market, and two consecutive weekly closes below $2.40 would serve as a strong signal for investors to exit. At the time of this report, XRP was trading at $2.52, showing a modest 2.6% increase over the last 24 hours, highlighting the ongoing volatility and the importance of monitoring these key technical thresholds.
