XRP has reached a critical stage following several sessions of sideways movement, with the token recently declining from the $1.50 to $1.53 area toward $1.44. The most recent hourly candle touched $1.403, bringing renewed attention to the $1.40 wick formed earlier in the week.
RSI poised for reset as price drops
Technical analyst Cryptoinsightuk outlined a scenario in which XRP could sweep recent lows before initiating a rebound. He highlighted that momentum indicators might soon begin to diverge from further price weakness, potentially marking the bottom of the move.
Cryptoinsightuk expects a complete hourly RSI reset, moving into oversold territory just as XRP revisits the $1.40 wick. He notes that a further move lower could occur, but divergence could set the stage for a recovery.
Currently, the 1-hour relative strength index (RSI) is around 34, while its moving average stands near 43. These values represent a significant decline from the elevated levels reached during XRP’s recent rally.
The analyst’s preferred path suggests the RSI may fall into the low-20s before stabilizing. In this scenario, XRP price could continue to make new lows, even as RSI starts to recover—setting up the conditions for a bullish divergence. Bullish divergence occurs when price forms a lower low while RSI creates a higher low, which may indicate underlying momentum is improving despite ongoing volatility.
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AAPL$1.35 marked as key liquidity zone
A review of the volume profile identifies $1.35 as a major area of liquidity, with $1.348 highlighted as a pivotal level. With XRP currently resting near $1.40, a move through that point toward $1.35 would align with Cryptoinsightuk’s scenario, potentially testing the liquidity pool while the RSI begins to shift higher.
At the same time, strong resistance remains overhead at $1.528. While XRP surged over 50% during its recent rally, the asset pulled back below $1.53 and has tested this resistance level repeated times amid subsequent consolidation.
| Level | Recent price activity |
|---|---|
| $1.35 | Major liquidity area |
| $1.40 | Current support, wick focus |
| $1.528 | Major resistance, retested after surge |
Futures positioning and open interest trends
On the 15-minute Binance Futures chart, XRP continued to weaken toward $1.43 while aggregated open interest also declined. Coin open interest has dropped to approximately 769 million units, while the dollar value of open positions is near $1.105 billion.
Funding rates remain positive at 0.0049%. The combined decline in price and open interest signals that traders have begun closing long positions, reducing speculative exposure amid bearish price movement.
If the price tests the lower liquidity zone and begins to recover, Cryptoinsightuk points to $1.43 as the first sign that a rebound is taking shape. A confirmed break above the $1.528 resistance could open the path to higher levels for XRP into the next phase of the rally.
Mini dictionary: Open Interest, the total value of outstanding derivative contracts, such as futures, that have not been settled. Rising open interest can indicate increasing participation, while declining open interest often suggests that traders are exiting positions.
The price action scenario anticipates a liquidity sweep down to $1.35, with a subsequent recovery only confirmed if XRP rises above $1.43 and then $1.528.
XRP continues to display high volatility, with chart analysts watching for signals of bullish momentum as the token approaches key support and liquidity levels. The technical setup suggests that, should a recovery follow the proposed liquidity sweep, XRP could attempt another move toward its recent highs.
