Ripple’s XRP token is nearing a critical level that’s been since before just once – during the 2022 crypto market dip. That time, XRP coin hit a cycle bottom of $0.29 after touching extremely oversold levels on the weekly Relative Strength Index (RSI), several crypto charterers note.
Echoes From 2022: Will XRP Bounce From Here?
Right now, the OG altcoin trades near $1.08, bouncing softly off the new cycle low recorded yesterday. When Bitcoin (BTC) briefly plummeted sub-$60K, XRP’s price followed this pattern to hit a new low at $1.04 – while it might be early to decide whether that’s a local bottom, the structure is identical to 2022.
With the historical parallel going strong, historical similarities don’t guarantee the same result. On the other hand, the circumstances for XRP’s bounce back would be completely different now than it was back in 2022.
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Ripple’s 6-year old legal battle with the SEC has concluded in Ripple’s favor, while XRP’s current position at #3 is higher-ranked than the TOP 5 placement four years ago. Moreover, the widely-debated CLARITY Act serves as another modern catalyst, bringing Ripple’s tech stack to federal-grade environments.
Futures Data Hints At Some Relief For XRP’s Bulls
With most market watchers in a ‘wait & see’ mode over this, Futures trading data adds another important layer onto the price analysis. With the volume spiking 69% since yesterday, there’s roughly $3 billion traded on leveraged markets. Naturally, the bulls incurred the most deficit, accounting for $12.67 out of $14.21 million in 24-hour liquidations.
The resurgence of trading volume following this excessively-leveraged position wipe-out could raise the odds of $1.04 being the local bottom. Judging from the Open Interest (OI) weighted funding rate, XRP’s bulls are trying to regain control.
After a huge dip into the negative areas, the OI-weighted funding rate is back in the green – a trait usually assigned to price stabilization.
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