XRP aims for a recovery after reaching oversold levels

XRP has fallen more than 5% in the past 24 hours; however, it is currently attempting to recover with the goal of surpassing the $2 mark. After dropping deep into the oversold territory early in the day, this altcoin has begun to emit some initial recovery signals, in the context of macroeconomic factors showing signs of shifting.

Although the current technical structure on the Ichimoku Cloud indicator still leans towards a downtrend, a short-term bounce is still possible if the upward momentum is strengthened. However, the resistance zones above remain a significant barrier, and the ability for XRP to maintain its recovery momentum will largely depend on the combination of technical factors and market sentiment in the upcoming period.

The RSI of XRP rebounds after falling into the oversold zone

The relative strength index (RSI) of XRP has surged to 44.24 after hitting a low of 17.80 earlier today — the lowest level in several weeks. The recovery came right after news that President Trump is considering suspending tariffs for 90 days on all countries except China. Although this is fake news, it has also contributed to boosting market sentiment.

The relative strength index (RSI) of XRP | Source: TradingViewJust one day ago, the RSI of XRP was at 46.97, indicating a significant level of volatility amid a widespread sell-off in the cryptocurrency market. The RSI, which ranges from 0 to 100, is a popular momentum indicator often used to identify overbought (above 70 or oversold )below 30 conditions of an asset.

Currently, with a level of 44.24, the RSI of XRP is in the neutral zone — a sign that selling pressure may be easing, although the upward momentum is still not clear. Notably, XRP has not entered the overbought territory even once in the past nearly three weeks, reflecting a lack of sustainable bullish momentum.

If the RSI continues to rise and exceeds the 50 level, this could be a signal indicating that buying pressure is recovering, opening up the possibility for a new bullish trend. Conversely, if this indicator remains flat or weakens again, XRP is likely to continue to be in a state of consolidation in the short term.

The Ichimoku Cloud chart shows a downtrend, but the potential for recovery is emerging

On the Ichimoku Cloud chart, XRP is maintaining a clear bearish structure. The current price is deep below the cloud, reflecting that the prevailing trend is still downward.

The two lines Tenkan-sen ( in blue ) and Kijun-sen ( in red ) are both pointing down and are located above the price level, acting as dynamic resistance levels – significantly hindering any recovery efforts.

The Ichimoku Cloud indicator on the XRP/USDT 4-hour chart | Source: TradingViewIn the future, the cloud turns red and has a large thickness, indicating that selling pressure remains very strong and there are no clear signals of a potential reversal in the short term.

However, the recent bullish candle approaching the Tenkan-sen line may be seen as a signal for a technical bounce or short-term recovery. However, that is not enough to change the situation.

To convincingly reverse the trend, XRP needs to break through both the Tenkan-sen and Kijun-sen lines, while also re-entering the Kumo area – a scenario that is still far off considering the current structure.

Overall, the Ichimoku Cloud structure is reinforcing the view of a comprehensive weakness, and if there is an increase, it will also encounter strong resistance from the cloud and key technical lines.

Will XRP surpass the $2.20 mark soon?

The price of XRP has recently dropped below the $1.80 threshold – the lowest level since November 2024 – indicating increased selling pressure and a strong retreating sentiment in the market. However, in the past few hours, this coin has begun to signal a recovery, showing an effort to regain upward momentum from the bulls.

XRP/USDT 4-hour chart | Source: TradingViewIf the current recovery trend continues to strengthen, XRP may advance toward the important resistance area at $2.02. A successful breakout of this level could open up the opportunity for the price to extend its upward momentum to higher levels around $2.23.

On the contrary, if the upward momentum cannot be maintained, XRP risks falling back below the $1.80 mark and re-testing the support area near $1.61. In a more negative scenario, if this support area is breached, selling pressure could increase significantly, pushing the price down to the $1.50 threshold.

You can see the price of XRP here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.

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