Overbought XRP RSI Can Take XRP to $0.90 Based on Historical Data

XRP might be gearing for a potential 36% surge to the $0.90 territory, according to market analyst CryptoInsightUK, who noted that the XRP RSI is moving towards overbought regions.

In his analysis, CryptoInsightUK referred to historical patterns involving altcoins during a market rally. He noted that as the crypto market experiences a surge, liquidity undergoes a strategic shift into various altcoins, causing them to pump in response.

Notably, since July, XRP has mirrored the percentage movements of the Total 3 index – an index that tracks the combined market capitalization of the crypto market, excluding Bitcoin (BTC) and Ethereum (ETH). As a result of mirroring these movements, XRP has recorded similar pumps during a market rally.

However, recent times have witnessed XRP trailing behind its counterparts as it deviates from the trend. CryptoInsightUK stressed that this lag is a usual trait of XRP, and historical data assures that XRP will soon catch up.

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The anticipation is fueled by the expectation that liquidity will move into XRP, aligning with established patterns in the crypto market. Should this occur, CryptoInsightUK believes a rally that could see the asset register an impressive surge would materialize.

XRP RSI Nears Overbought Zone

One key metric that reinforces the likelihood of an upcoming move is the Relative Strength Index (RSI). As the XRP RSI approaches the overbought zone, CryptoInsightUK suggests that the crypto market often experiences explosive moves.

The RSI serves as an important barometer for price movements. While market watchers could see an overbought reading as a signal of potential exhaustion on an uptrend, it could also indicate a strong buying momentum that might push the price higher.

Drawing parallels with past occurrences, CryptoInsightUK highlights that the last time XRP ventured into overbought RSI territory, it resulted in a further substantial rally of approximately 36%.

Data from an accompanying chart corroborates this claim. On Oct. 30, XRP’s RSI soared to 70.78, suggesting the asset was overbought. However, XRP surged from a low of $0.5372 to a high of $0.7324 on Nov. 6. This rally marked a 36.84% surge in XRP’s price.

XRP Could Reach the $0.90 Range

The real question is if XRP can replicate this scenario, as its RSI now sits at 62, looking to move further up. Using historical context as a guide, CryptoInsightUK believes such a surge is likely. A rally of similar magnitude would propel XRP into the $0.90 range. 

It’s crucial to note that historical patterns are not foolproof predictors. The looming uncertainty prompts market watchers to ponder whether XRP will follow historical trends or carve out a unique path this time.

XRP has faced a roadblock to its current uptrend as the broader market rally cools. The asset now changes hands at $0.6501 amid a 1.86% decline over the last 24 hours. Meanwhile, 24-hour trade volume has dropped 37% to $990,190,906.

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• Source: https://thecryptobasic.com/2023/11/13/overbought-xrp-rsi-can-take-xrp-to-0-90-based-on-historical-data/?utm_source=rss&utm_medium=rss&utm_campaign=overbought-xrp-rsi-can-take-xrp-to-0-90-based-on-historical-data