French cryptocurrency analyst Egrag Crypto has pointed to a significant Fair Value Gap (FVG) emerging in the XRP market, specifically between $1.00 and $1.05. According to Egrag, the ongoing test of the FVG suggests that XRP could find strong support near these levels, potentially paving the way for a move toward $1.25 if current momentum holds.
Historical support: Double-bottom formation boosts optimism
Analysis of recent price action highlights that XRP has previously formed a double-bottom pattern in this range. This classic technical indicator, which occurs when an asset’s price bounces twice from a similar low, is widely recognized as a bullish reversal signal. Egrag stated that XRP displayed this pattern between $1.08 and $1.10, with price rebounds in line with Elliott Wave principles.
Elliott Wave Theory is a long-standing technical framework that segments price movements into impulsive and corrective waves, identified with sequences such as 1-2-3-4-5 and A-B-C. The chart attached to Egrag’s analysis breaks down these movements, referencing simple correction patterns, impulse waves, and Fibonacci-based projections for target levels.
360 Trader, another experienced market observer, has described the area slightly above $1 as highly appealing for accumulation. Nonetheless, both analysts have underscored that the setup in derivatives markets calls for extra caution, prompting them to focus primarily on spot trading positions rather than leveraged ones.
Mini dictionary: Elliott Wave Theory, developed by Ralph Nelson Elliott, is a technical analysis method suggesting that financial market prices unfold in specific, repeating wave patterns influenced by investor psychology and market sentiment.
Technical signals: RSI and institutional activity
The daily Relative Strength Index (RSI) for XRP has sunk to a notably low reading of 22, pushing the asset into an oversold zone. Typically, such a low RSI level can point to increased rebound potential, as markets may be primed for a reversal once selling pressure subsides.
Egrag and 360 Trader have both cautioned that confirmation of a sustainable bottom is still lacking. At this stage, large investors—commonly referred to as whales—have yet to intervene, with TradingView data indicating muted whale activity across multiple XRP timeframes. This hesitation signals persistent uncertainty among institutional actors.
The area slightly above $1 appears favorable for accumulation, but a solid bottom must be established before anticipating significant buying by major players.
Supporting this cautious approach, the Chaikin Money Flow (CMF) remains below zero across all timeframes, while the Bull Bear Power (BBP) indicator continues to point to dominant bearish control. Analyst Ali Martinez noted that a decisive push below the $0.99 support level could trigger more pronounced declines for XRP.
| Indicator | Current Status | Implication |
|---|---|---|
| RSI | 22 (Oversold) | Potential for rebound if conditions improve |
| CMF | Below 0 | Continued bearish bias |
| BBP | Bearish | Sellers in control |
Wider market sentiment
The broader cryptocurrency market has been under pressure, with Bitcoin dropping below $69,000. XRP, meanwhile, has managed to hold above the $1 threshold, which remains a psychologically important level for traders and investors alike.
Amid a sharp fall in the Crypto Fear & Greed Index to under 23, sentiment remains cautious as retail participants look for signs of recovery. Despite overall hesitance, long-term XRP holders are watching for a shift in sentiment that might catalyze renewed buying interest.
A persistently low Fear & Greed Index and weak whale activity highlight ongoing caution in the market as XRP seeks to stabilize above key support.
