XRP (CRYPTO: XRP) is down 3.7% over the past 24 hours, prompting chart analyst Ali Martinez to suggest a potential local bottom.
On the other hand, prominent analyst Cryptoinsightuk sees a potential relief rally as possible as its four-hour relative strength index reached deeply oversold levels.
The analyst expects at least a relief rally but cautioned that oversold conditions do not necessarily confirm a market bottom.
A potential move toward $1.30 could fill a fair value gap and establish a higher price low near the bottom of the trading range.
For stronger bullish confirmation, the analyst wants to see XRP make a lower price low while the RSI forms a higher low, signaling weakening selling momentum.
Could XRP Drop Before Rebounding?
Cryptoinsightuk noted a possible descending triangle pattern.
If XRP holds current levels, the recent breakdown could prove to be a bearish fakeout. This could trigger a rebound toward range highs, supported by favorable liquidity conditions.
However, a sweep below the range lows remains possible, with $1.22 still a downside target.
The analyst sees support zone above $1.30 and below $1.35 as a potential area for spot accumulation or low-leverage long positions but is waiting for clearer confirmation before entering a trade.
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