Crypto analyst Steph has pointed out an “interesting” chart, which has led previously an XRP price rally. This came as the analyst also suggested that the altcoin may be forming a bottom in preparation for the next leg to the upside.
Analysts share why this chart is interesting for the XRP price
In one X messageSteph highlighted the 3-week XRP price chart and stated that it was ‘interesting’ for one reason. He revealed that the Stochastic Relative Strength Index (RSI) has fallen to 0.00 in the space of three weeks, which is extremely rare and has only happened once before, in 2022. bear market bottom.
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Steph further explained that on such a long time frame, this indicator only reaches zero when sales pressure has been completely depleted, which is positive for the XRP price. The analyst added that this means momentum to the downside has dried up, although he cautioned that this does not mean an immediate reversal in price.
Steph noted that the last time this signal appeared, XRP price entered a long accumulation phase before the next big move up. As such, the analyst claimed that this again points to downside risk being structurally limited and all that long term holders The supply is absorbed rather than distributed. He further noted that these signals tend to mark cycle lows rather than short-term trades.
The XRP ETFs also mark positive for the XRP price as these funds maintain their inflows. These funds have recorded daily inflows since the launch of the Canary fund on November 13. As a result, they now have net assets of over $1.1 billion, even as XRP continues to see significant demand from institutional investors.
XRP remains below key levels
In one X messageCryptoXLarge stated that on the weekly chart, XRP price remains below the descending trendline around the 8 to 21 EMA levels. He further noted that the price is trying to undercut this week main support zone around $1.95, which corresponds to the Fib 0.5 level and the 89-week EMA, a support that has held throughout the year.
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CryptoXLarge stated that a weekly close below this level could increase the chances of a move towards the $1.60 support, which is the Fib 0.618. Meanwhile, a weekly close above $1.95 could boost buying interest, leading to relief XRP price rally towards $2.30 and then $2.70. Crypto analyst Crypto King also resonated a similar sentiment, stating that a $1.98 clawback could ultimately send the altcoin to $3.66.
At the time of writing, the XRP price is trading around $1.87, up in the past 24 hours, according to facts from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com