Is XRP’s recovery sustainable or is this just a dead cat bounce?
Despite the brutal collapse and bearish conditions, one key indicator suggests a near-term rebound is in store.
The light at the end of the tunnel
The past 24 hours have been brutal for the digital asset sector, and XRP has undoubtedly felt the impact. The valuation plummeted to $1.11 (according to CoinGecko data), the lowest level since November 2024, while the market cap briefly shrank to almost $70 billion.
The violent move south has caused the asset’s Relative Strength Index (RSI) to re-enter the territory last seen during the October 2025 collapse. The technical analysis tool measures the speed and magnitude of recent price changes and ranges from 0 to 100.
Ratios below 30 suggest that the valuation has fallen too much in a short period of time, meaning the token is oversold and ready for a potential recovery. On the contrary, anything above 70 is considered a bearish zone. Hours ago, XRP’s RSI fell to 13, but later rose to the current 40.
Meanwhile, the asset’s price has regained some lost ground to near $1.40, raising questions about whether this marks the start of a real recovery or simply represents a dead-cat bounce.
It is important to note that the spot XRP ETF’s net flows have been positive in recent days, indicating that institutional investors remain interested in the asset. To put this into perspective, the same investment vehicles focused on Bitcoin (BTC) and Ethereum (ETH) have experienced massive red daily candles.
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Not so fast
Despite the optimistic signs mentioned above, some industry participants believe that another crash is imminent. X-user FEXIR | CRYPTO predicted that XRP could fall below $0.50, while Charting Guy warned that the price could drop to $1.
The increasing number of tokens stored on Binance is reinforcing fears of another crash. Data from CryptoQuant shows that investors have been transferring coins from self-custody to the largest exchange over the past week, and now reserves are close to 2.73 billion XRP. Such a development is often interpreted as a pre-sale step.
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