The monthly Relative Strength Index (RSI) for XRP is currently at a crucial juncture, with analysts closely watching its movement. According to EGRAG CRYPTO (@egragcrypto), a well-known crypto analyst, maintaining support above 65 is essential.
If the RSI fails to hold, XRP could test the 14-period Simple Moving Average (SMA). Historical data suggests that interaction with this moving average often precedes a substantial upward price movement.
#XRP – Monthly RSI Update
:
A Double Top pattern is approaching!
It’s crucial that the RSI holds above 65; otherwise, we may need to touch the 14 SMA. Historical data suggests that this often precedes a significant pump!
The… pic.twitter.com/nEnWiiTBv1— EGRAG CRYPTO (@egragcrypto) February 25, 2025
Bollinger Bands on the RSI and Historical Cycles
The chart analysis also incorporates Bollinger Bands applied to the RSI. The current widening of these bands suggests increased volatility.
EGRAG CRYPTO points out that historically when the RSI approaches the upper boundary of the Bollinger Bands, it frequently surpasses it on a second attempt. A repeat of this pattern could indicate that XRP is on the verge of another strong rally.
The wide Bollinger Band range implies that the asset is experiencing significant price movements, with a tendency to test both the upper and lower boundaries. Traders often interpret such signals as confirmation of a trend continuation if the RSI remains bullish.
In 2017, XRP experienced a prolonged period with narrowing Bollinger Bands before a rapid expansion and the historic surge to its all-time high. The digital asset is now coming out of an extended period with narrow Bands, and the rapid widening could facilitate another massive price surge.
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Double Top Formation
Another key observation in the analysis is the potential formation of a double-top pattern in XRP’s RSI. Typically, a double top is a bearish reversal signal if confirmed by declining momentum.
However, EGRAG CRYPTO suggests that in the context of XRP, past occurrences of this pattern have not always led to a downturn. Instead, they have sometimes preceded major price surges.
XRP is trading at $2.29 after a 5.1% decline from yesterday. If XRP follows its historical pattern, the current setup could signal an impending breakout rather than a continued decline.
What to Expect From XRP
At the time of EGRAG CRYPTO’s analysis, XRP’s RSI sat at 77. Although it has dropped slightly, sitting at 68, above the crucial 65 level. Past cycles have shown strong recoveries and price appreciation when XRP’s RSI holds above key thresholds.
EGRAG CRYPTO reiterated his recent statement that the community is not bullish enough on XRP. He stated, “Men lie, women lie, but charts don’t lie!” The current technical setup suggests that XRP may be in the early stages of another significant move.
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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