XRP Hits Most Oversold RSI on Record as Bullish Reversal Setup Emerges
XRP

XRP Hits Most Oversold RSI on Record as Bullish Reversal Setup Emerges

By Samuel

XRP monthly RSI hits its lowest recorded level as traders watch bullish divergence and the key $1.65 macro zone.

XRP has entered renewed technical debate after its monthly RSI fell to its lowest recorded level. The move followed the failure of an earlier 1-2-3 RSI bottom model.

The latest chart update showed the RSI moving below 42, 41, and 40. However, the indicator is now flattening, shifting focus toward momentum recovery.

Analysts are watching whether XRP can form a bullish divergence on the monthly chart. That setup would appear if price makes a lower low while RSI makes a higher low.

At the same time, XRP opened July below its 50-month simple moving average. The $1.65 level is now viewed as the main macro confirmation zone.

XRP Monthly RSI Falls to Record Low

The shared update said XRP has reached its most oversold monthly RSI reading on record. This reading came after the earlier bottom model failed to hold. As a result, traders are now using a different momentum roadmap.

The RSI has dropped below several levels that analysts were watching closely. These included 42, 41, and 40 on the monthly timeframe. Such readings often show strong pressure, although they do not confirm a bottom alone.

However, the flattening RSI has become the next key signal for traders. A flat reading can show that selling momentum is slowing. Therefore, attention has moved from the drop to possible recovery levels.

Bullish Divergence Scenario Gains Attention

The analyst said XRP could still move lower in price before any recovery forms. If RSI holds a higher low during that move, divergence may develop. This would show weaker price action but improving momentum.

A bullish divergence is often watched during late-stage market weakness. It can suggest that sellers are losing strength over time. Still, traders usually wait for price confirmation before changing their outlook.

The RSI recovery path now includes 40, 42, 46.5, 47.8, and 50. A move through those levels would show stronger monthly momentum. Until then, XRP remains under technical pressure on higher timeframes.

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$1.65 Remains Key Macro Gate

XRP opened July below the 50-month simple moving average, according to the update. That level is now being compared with earlier cycle behavior. In past cycles, XRP reportedly bottomed near the 88-month simple moving average.

The analyst’s probability map gives three possible paths for XRP. The main scenario expects a retest or work toward the 88-month average. Another path sees XRP reclaiming the 50-month average before reaching that lower zone.

The $1.65 level remains the key price area in the current roadmap. A break above it would change the macro structure, according to the analyst. Until that happens, XRP remains in compression while traders watch RSI and moving averages.

Samuel

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