The current plunge in XRP has rattled many traders, but a close look suggests that panic may be misplaced. Rather than signaling a brutal bear capitulation, the recent drop could actually be laying the groundwork for a powerful rebound.
Monthly Stochastic RSI: A Historical Buy Zone
According to STEPH IS CRYPTO, the monthly Stochastic RSI for XRP is once again approaching a key support zone around 40. Historically, this level has acted as a strong trough after a full overbought cycle.
Steph points out that in both the 2017 and 2021 bull runs, XRP’s Stochastic RSI dropped from overbought, found support near 40, and then exploded higher. He argues that the current setup strongly mirrors those prior inflection points.
Bearish Candle, Bullish Implication
Steph also highlights the October monthly candle, which left a prominent lower wick on the XRP chart. He interprets this as a sign of rejection — a classic liquidity hunt where weak hands were flushed out before price reversed. Such wicks often mark local lows or bear market capitulation zones, according to his analysis.
You Are VERY Wrong About This #XRP Dump. pic.twitter.com/awPUQCdNxd
— STEPH IS CRYPTO (@Steph_iscrypto) November 15, 2025
Other Signals Align
On shorter timeframes, Steph points to a liquidation heatmap showing a large cluster of short positions stacked above the current XRP price. In his view, this creates strong potential for a short squeeze. If XRP reverses upward, those short trades could be forced to cover, adding upward fuel to the rally.
While some traders are alarmed by a recent daily “death cross” — when the 50-day moving average crosses below the 200-day — Steph challenges the bearish interpretation. He notes that similar patterns have appeared near prior bottoms. Rather than signaling a long-term breakdown, he argues this could be a setup for another major leg up.
Steph further emphasizes the daily RSI, which he says is breaking out in a way that historically preceded strong upside moves. For him, this adds to the narrative that the recent drop is not pure weakness, but part of a broader accumulation phase.
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Community Context: Optimism & Skepticism
The broader XRP community appears split. Some analysts echo Steph’s bullish case, pointing to the Stochastic RSI pattern and liquidity structure as compelling.
Others warn of near-term risks: renewed selling pressure, whale unloads, and potential retests of lower support. Still, even among skeptics, a common refrain is do not panic: many view the volatility as clearing the path for a bigger move.
A Tactical Opportunity, Not a Breakdown
Steph Is Crypto’s framework suggests this is not a breakdown, but a tactical setup. The convergence of a historically bullish Stochastic RSI level, a capitulation-style wick, and clustered short liquidity makes the case for a potential bounce strong.
While nothing is guaranteed in crypto, his analysis argues that the current dump might be precisely the type of reset that precedes a major move higher. If history repeats, this could mark the beginning of a renewed bullish cycle for XRP, not the end.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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