Ripple (XRP) price is hovering above $0.50 on January 26, with monthly losses approaching 20%. Key market indicators suggest an imminent rebound phase.
Since peaking at $0.63 on January 1, 2024, XRP price has entered a steep 19% correction, sliding toward $0.50. However, critical signals indicate the sixth-largest cryptocurrency by market cap may be poised for a significant recovery.
XRP Approaches Oversold Territory After Month-Long Retracement
XRP holders have endured a 19% price decline between January 1 and 26, driven by:
- Ongoing Ripple vs. SEC legal controversies
- Tepid crypto market sentiment post-Bitcoin ETF approval
Yet, technical indicators now suggest XRP is nearing oversold conditions, signaling a potential rebound.
Relative Strength Index (RSI) measures recent price momentum, with values below 30 indicating oversold conditions. On January 26, XRP’s RSI dropped below 30—a historical buy signal.
👉 Discover how RSI can predict market turns
The last time XRP’s RSI fell this low (September 11, 2023), it triggered a double-digit rally within weeks. A repeat could propel XRP upward.
On-Chain Data Shows Undervalued XRP Market Cap
Network Value to Transactions (NVT) Ratio compares market cap to network transaction volume. XRP’s NVT ratio hit 62.1 in late January—its lowest monthly level—indicating undervaluation relative to network activity.
Key implications:
- Price decline not matched by reduced network utility
- Undervaluation often precedes rebounds during bearish sentiment
Price Forecast: 20% Rally Toward $0.60
Bullish Scenario:
- Rebound from $0.50 (lower Bollinger Band)
- Test 20-day SMA at $0.56
- Breakthrough resistance could push price 20% higher to $0.60
Bearish Risk:
- Failure to hold $0.50 may trigger drop to $0.45
FAQ
Q: What’s driving XRP’s potential rebound?
A: Oversold RSI, undervalued NVT ratio, and historical buy signals suggest upward momentum.
Q: How high could XRP price go?
A: A 20% gain to $0.60 is possible if bulls break key resistance levels.
Q: What’s the biggest risk to XRP’s recovery?
A: Losing the $0.50 support could lead to further declines toward $0.45.