In the early days of 2026, XRP experienced a remarkable rise, hitting $2.41 on January 6. However, this surge was followed by four consecutive days of selling, causing the price to drop to $2.06. This pullback, driven by profit-taking, extended into a fifth day and resulted in oversold signals in the technical indicators, drawing the attention of market participants who are now watching to see if this technical setup will pave the way for new price movements.
XRP Bucks the Trend with Resilient Performance Despite Market Pressures
XRP’s Oversold Signal
Well-known for his technical analyses in the cryptocurrency market, Steph is Crypto noted that XRP has entered the oversold zone in the short term. In his three-week XRP/USDT chart, data reveals that the stochastic RSI indicator has dipped below the 25 level. According to classical technical analysis, when the RSI falls below 30, it indicates that selling pressure has reached saturation.
Historical price movements support this observation. In 2023 and 2024, when the same indicator reached similar levels, XRP experienced strong rallies of 256% and 857%, respectively. Although the analyst does not guarantee a repeat of historical patterns, he emphasizes that the current outlook presents a significant threshold for buyers.
In a separate analysis, Steph is Crypto shared a more ambitious price target, suggesting that XRP could reach 5 dollars faster than expected if market conditions are favorable. This expectation gains attention, particularly with recovery signals in technical indicators.
Momentum Shift in the Weekly Chart
Another noteworthy development for XRP is the RSI on the weekly time frame surpassing its moving average. According to the analyst, this breakout generally occurs when market momentum shifts from sellers to buyers. Each similar breakout observed in the weekly chart since 2024 has resulted in significant price increases in the following weeks.
On the price front, XRP has been trading in a wide range between $1.77 and $2.41 since mid-November 2025. The five-day rally at the start of 2026 allowed the price to break above its daily 50-day moving average, which had been a significant resistance for a long time. Whether this level can be maintained as support in the short term will be crucial for the continuation of the upward movement.
The first critical threshold in upward movements emerges as the $2.56 level. If this area is surpassed, targets of $3 and $3.5 could technically become relevant. Meanwhile, corporate interest continues to develop, with Evernorth, operating in health and insurance, announcing that they are exploring liquidity and treasury management use cases with Doppler Finance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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