What to know:
- EGRAG says XRP’s historic RSI reset still preserves market structure.
- The analyst watches the RSI 44 level for potential momentum recovery.
- Historical XRP cycles showed deep resets before major expansions.
Crypto analyst EGRAG CRYPTO has argued that XRP’s current RSI collapse could become the foundation for a major rally, despite what he described as one of the deepest momentum resets in the asset’s history.
According to EGRAG, XRP continues to hold its broader market structure even as the Relative Strength Index falls into extreme territory. The analyst said previous market cycles produced similar conditions before substantial expansions emerged.
His latest chart highlights a recurring “1-2-3” pattern that appeared during earlier XRP corrections. EGRAG noted that the structure remains intact and suggested the current RSI breakdown may represent a second retest rather than a complete market failure.
The analysis comes as XRP traders continue to search for signs that the prolonged period of weak momentum could be approaching an end. While sentiment remains subdued, EGRAG believes the current setup resembles previous phases that eventually delivered strong market recoveries.
XRP Bulls Watch Critical RSI Recovery Level
A key element of EGRAG’s analysis is the green support line positioned near the 44 RSI level, which he believes could provide the first indication of returning market strength if successfully reclaimed. Although the chart shows XRP trading below that threshold following the recent RSI decline, EGRAG maintains that a move back above 44 would strengthen the case for a broader recovery.
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Previous XRP cycles followed a similar path, with RSI entering depressed territory as sentiment deteriorated and momentum weakened before buyers gradually regained control, leading EGRAG to view the current setup as another example of that historical pattern.
The chart also identifies future RSI targets near 50 and 80, levels that coincided with stronger market conditions during previous XRP advances and could reinforce expectations for a larger expansion phase if reached again.
Additionally, EGRAG pointed to the historical “1-2-3” structure highlighted within red boxes on the chart, noting that similar formations appeared during multiple XRP cycles over the past decade and were followed by momentum recoveries after deep RSI resets.
According to the analyst, the current cycle remains consistent with that framework because, despite significant damage to market sentiment, the broader bullish structure has not been completely invalidated.
Meanwhile, market participants continue to monitor whether XRP can preserve those historical patterns while reclaiming key momentum levels, as the next move in RSI could determine whether the current weakness develops into a prolonged downturn or evolves into a renewed recovery phase.
Historical Cycles Offer Context
EGRAG’s chart suggests that the deepest periods of pessimism often emerged near major turning points for XRP. While past performance does not guarantee future results, the analyst believes the current RSI reset warrants close attention given its similarity to prior cycle behavior.
Despite one of the deepest RSI declines in XRP’s history, EGRAG CRYPTO believes the asset’s long-term structure remains intact. The analyst maintains that a recovery above key RSI levels could support the next major expansion phase if historical patterns continue to play out.
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