EGRAG CRYPTO (@egragcrypto), a popular crypto analyst on X, recently shared a chart highlighting a potentially bullish signal for XRP. The analysis focuses on the Relative Strength Index (RSI) in the monthly timeframe.
The RSI is a significant technical indicator used by investors to gauge the momentum of an asset’s price movement. It measures the magnitude of recent price changes to assess whether an asset is overbought (above 70) or oversold (below 30).
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Generally, an RSI reading below 30 suggests an oversold condition, potentially indicating a buying opportunity. Conversely, an RSI above 70 suggests an overbought condition, potentially indicating a selling opportunity.
XRP at the Lowest RSI in History
EGRAG CRYPTO’s analysis points towards the current monthly RSI for XRP being at its lowest point in the coin’s history. At the time of his analysis, XRP had an RSI of 38.02. This, according to the analyst, signifies a positive development. The underlying logic is that such an extreme low in RSI suggests the asset may be oversold, potentially leading to a price correction upwards.
The analyst further emphasizes the upward curvature of the RSI on the monthly chart. This curvature suggests a potential shift in momentum, with the RSI potentially beginning to rise. However, EGRAG CRYPTO acknowledges a “long road ahead” for the RSI to reach traditional overbought territory (above 70 or even 80), suggesting a long period of bullish momentum.
Another prominent analyst recently predicted that something big is coming for XRP, and analysts have been pointing out a lot of positive technical indicators recently.
Implications for XRP Investors
The historically low RSI and its upward curvature suggest a potential for a price increase in the future. The analyst encourages the XRP community to stay strong, implying that despite the current low price point, there could be benefits from long-term holding.
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EGRAG CRYPTO has always been a strong proponent of XRP. Just like him, many other analysts can see the immense potential of this digital asset. Despite its prolonged underperformance, they realize that a big turnaround is just around the corner.
While future price movements remain uncertain, the historically low RSI suggests a possible reversal from the current lows. Although EGRAG CRYPTO did not provide a specific target, he recently predicted that XRP’s market cap would reach $3 trillion, potentially sending the digital asset above the $50 mark.
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