XRP’s RSI Signals Bullish Reversal—How High Can It Go?
The post XRP’s RSI Signals Bullish Reversal—How High Can It Go? appeared on BitcoinEthereumNews.com.
XRP, the native currency of Ripple, is back in the limelight after its Stochastic Relative Strength Index (Stoch RSI) broke above a 14-month downtrend line—a technical event which has analysts and traders murmuring about a potential huge price rally. The sign, first noted by TheCryptoBasic and then corroborated by several independent chartists, suggests XRP’s long period of consolidation is likely over, with some price models now indicating the $9 zone—price levels unvisited since the last crypto bull cycle. What Is RSI and Why Is It Important for XRP? Relative Strength Index, or RSI, is an indicator of momentum that measures the speed and magnitude of price direction change, typically used to identify overbought and oversold conditions. XRP Monthly Chart. Source: BigMike The Stoch RSI is a more sensitive version, designed to identify trend reversals sooner by applying the stochastic formula to RSI values rather than price. When Stoch RSI is crossing above a long-term downtrend, this is typically interpreted as a sign that bear momentum is abating and the bulls are gaining control. For XRP, the Stoch RSI had been locked below its midline for over a year, showing persistent selling pressure and price action weakness. The recent breakout, however, is an unmistakable shift in momentum, with the indicator crossing into overbought for the first time since early 2023. Breakout or Bull Trap The technical setup for XRP is compelling. Having traded sideways for months between $0.45 and $0.70, XRP has just moved above its 200-day moving average, a crucial resistance point which capped every rally since the beginning of the SEC lawsuit. Source: TradingView The Stoch RSI breakout is further confirmation, with the indicator now mirroring patterns before XRP’s historic bull runs in 2017 and 2021. Nevertheless, a warning is due. RSI is presently heading towards overbought (above 70),…
Filed under: News - @ July 1, 2025 1:24 pm