- XRP’s Stochastic RSI at 0.41 marks one of its most oversold levels in years, signaling selling exhaustion.
- Major support at $0.37 appears to be holding, while long-term forecasts suggest a target up to $8 by late 2026.
- Analysts cite regulatory clarity and potential ETF inflows as catalysts for a renewed bull cycle.
The volatile world of cryptocurrencies, XRP has captured attention once again, this time for flashing extreme oversold conditions on its weekly chart. The token from Ripple Labs is trading near a critical horizontal support zone around $0.37, a level that has historically acted as a launchpad for recoveries. Momentum indicators, particularly the Stochastic RSI at a mere 0.41, scream exhaustion among sellers, suggesting the downward pressure may be nearing its end.
Technical Analysts See Exhausted Sellers and Reversal Signs
This development comes amid broader market dynamics. Ripple’s scheduled unlock of 1 billion XRP on January 1, 2026, from its escrow account has added to short-term supply concerns. However, historical patterns show that most unlocked tokens are re-locked, minimizing net impact on circulation. Combined with a dwindling exchange supply—down significantly due to institutional accumulation and potential ETF approvals—this could set the stage for a supply shock later in the year.
Technical analysts are buzzing with optimism. The weekly chart reveals XRP bouncing off support after a prolonged downtrend from mid-2025 highs above $4. Markets rarely reverse on bullish news alone; instead, they pivot when one side runs out of steam, as emphasized by crypto trader Steph is Crypto. With oversold readings this severe, a mean reversion rally could be on the horizon.
Forecasts Range From $8 to $20: Can XRP Deliver Another Big Run?
Looking ahead, bullish forecasts abound. Standard Chartered envisions XRP climbing 300% to $8 by year-end, fueled by U.S. regulatory clarity post-SEC lawsuit resolution and growing institutional interest. More ambitious predictions using Fibonacci extensions point to $18-$20, assuming favorable macro conditions and wider adoption of the XRP Ledger for cross-border payments. AI models from platforms like Claude Sonnet project a modest near-term upside to $1.92 by late January, but the long-term trajectory hinges on breaking key resistance at $1.92.
Yet, risks remain. The recent 1.5% daily dip to $1.84 on January 1 underscores ongoing bearish sentiment, with bulls needing to defend Fibonacci supports. A failure here could extend the correction. Still, with address counts hitting records and ETF speculation heating up, XRP’s fundamentals appear resilient. For investors, this oversold setup presents a high-risk, high-reward opportunity. As one analyst notes, bottoms form in despair, not euphoria. If history rhymes, 2026 could mark XRP’s triumphant return, potentially multiplying portfolios for those who buy the fear.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
