XRP's technical indicators flash rare oversold signals as the Stochastic RSI collapses to absolute zero on the 3-week chart—an event witnessed only once before during the 2022 bear market bottom.
XRP faces mounting pressure as technical indicators reveal extreme oversold conditions rarely witnessed in the asset's trading history. The digital asset has surrendered critical support levels, with analysts now eyeing deeper retracements.
According to market analyst Ali, support has vanished for XRP, with the $1.10 price level now coming into sharp focus as the next potential target. The cryptocurrency has experienced a brutal fourth quarter, shedding 35% of its value since October.
This dramatic decline has pushed XRP toward its first annual loss since 2022, currently down 10.39% year-to-date. The sustained selling pressure marks a significant reversal from earlier optimism, as the token relinquished the psychologically important $2 threshold.
Rare Technical Signal Emerges on 3-Week Chart
Market analyst Steph recently highlighted an exceptional development on XRP's 3-week chart, noting that the Stochastic RSI indicator has plummeted to an absolute 0.0. This momentum oscillator measures price movement strength by calculating the Relative Strength Index against its recent range.
According to Steph on X, the Stochastic RSI recently dropped to an absolute 0 on the 3-week XRP chart.
The indicator operates within a 0-100 range, typically identifying overbought conditions above 80 and oversold territories below 20. When values drop to extreme lows, it signals weakening momentum and potential exhaustion of selling pressure.
This technical event carries significant weight because readings below 20 already indicate oversold conditions. A collapse to absolute zero on such an extended timeframe requires exceptionally bearish market dynamics. The current occurrence represents only the second instance in XRP's entire trading history.
Historical Parallel to 2022 Market Bottom
The previous occasion when XRP's Stochastic RSI reached zero occurred during the devastating 2022 bear market. As noted by analyst Steph, the asset eventually bottomed at $0.28 in June 2022 amid contagion from the Terra ecosystem collapse, when XRP crashed 59.13% that year.
These signals tend to mark cycle lows, not short-term trades, Steph concluded.
While the 2022 signal ultimately marked a bottom, the recovery didn't materialize immediately. XRP consolidated within a range for months before staging its eventual comeback. The analyst refrained from making definitive predictions but suggested the signal indicates selling pressure may be nearing exhaustion.
The dried-up downside momentum doesn't guarantee an imminent bullish reversal. Both the 1-week and 3-week charts currently display the zero reading, reinforcing the severity of oversold conditions. Technical indicators alone cannot predict precise timing for trend reversals.
TheCryptoBasic reported that XRP's three-month bearish streak since October has created this rare technical setup. The indicator has progressively declined across multiple timeframes throughout the downturn.
Market participants now watch whether history repeats itself or if the current environment produces different outcomes. The $1.10 support level stands as the next critical test for bulls attempting to establish a floor. Trading volumes and broader market conditions will likely influence whether XRP follows its 2022 playbook or charts a new course.
3 Key Takeaways:
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XRP's Stochastic RSI drops to 0.0 for only the second time ever, matching 2022 bear market conditions precisely.
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Analyst warns $1.10 support now in focus after XRP surrendered $2 level during brutal 35% quarterly decline.
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Historical 2022 parallel saw XRP bottom at $0.28 but consolidate for months before recovery eventually materialized.
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XRP Stoch RSI Drops to 0: 2022 Bottom Signal Returns
XRP's Stochastic RSI plunges to 0.0 for only the second time ever, mirroring 2022's bear market bottom. Analysts warn $1.10 support now in focus.