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“By the time the crowd feels safe again, you may already be looking at XRP from behind,” one popular analyst stated.
ByDimitar Dzhondzhorov
Ripple’s cross-border token was at the forefront of gains toward the end of August when its price reached $1.70. Since then, though, bears have regained control, and it has experienced a substantial pullback.
The CLARITY Act’s failure only worsened XRP’s position, driving it down to roughly $1.26. It has regained some ground and now trades around $1.30, but it is still down about 6% on a weekly basis. One popular analyst remains unfazed by the recent weakness, suggesting it may present an attractive buying opportunity. Here’s why.
First Time in History
X user Cryptollica disclosed that XRP’s two-week RSI ratio has dropped to around 33.5, the lowest point in its history and lower than in 2018, during the 2020 COVID pandemic, and in the 2022 bear market.
“That is the part the market is misreading. Sentiment has been destroyed, momentum has been washed out to a historical extreme, and the asset is being treated as if the story is already over. But this is exactly where asymmetry becomes interesting. Market has already delivered the pain while the long term structire is still active,” the analyst said.
Cryptollica maintained that everyone wants certainty after the move becomes obvious; investors find XRP attractive after the breakout, and almost nobody is interested when the chart “looks broken.”
Dropping to this level is indeed interpreted as a bullish sign. It indicates that Ripple’s native token has entered oversold territory like never before, which could precede a strong recovery.
The institutional appetite is another positive signal. Last week, spot XRP ETFs smashed another all-time high after cumulative total net inflows surpassed $1.7 billion. Despite the choppy price performance, these investment vehicles continue to attract capital, and September 2 was the only red day in the past month and a half.
Additional Forecasts
XRP started the current business week on the right foot, rising above $1.40. Ali Martinez noted the resurgence, forecasting that a sustained close above $1.38 could confirm the bullish move and open the door to a rally toward $1.60. In fact, the price continued pumping to nearly $1.50 but then headed south and could not reach the analyst’s target.
Source: cryptopotato.com