XRP Charts Signal Possible 25% Price Recovery Could Arrive in July
Technical indicators including a death cross formation and liquidation data point to a potential 25% short-term price recovery for XRP, with one market analyst projecting a long-term surge to $8.
Several technical indicators for XRP (XRP) are signaling the possibility of a 25% relief rally occurring within the next few weeks.
Key takeaways:
- A rare death cross pattern appears ready to form on XRP's chart, potentially setting up a rebound trajectory toward $1.40.
- Broader technical patterns suggest XRP could be establishing a significant bottom formation, with potential for an extended rally reaching $8 over the coming months.
Mean-reversion pattern points XRP toward $1.40 target
On Monday, the 20-week exponential moving average (20-week EMA, green) for XRP near $1.40 stood poised to drop beneath its 200-week EMA (blue) located near $1.39.
Should a weekly close confirm below the longer-duration average, it would constitute a rare death cross formation between these two trend indicators.
Historical data reveals that XRP's prior 20-week/200-week EMA crossovers have been succeeded by relief rallies returning toward the 200-week EMA level. These include an approximately 20% price recovery during 2019 and a more substantial 82.7% rebound throughout 2022.
Should a comparable mean-reversion pattern emerge this time, the $1.39–$1.40 range would become the focal point, representing approximately 23%–25% potential gains by July from XRP's present price level near $1.13.
The weekly relative strength index, or RSI, for XRP was also positioned just above the oversold threshold of 30 on Monday.
The RSI functions as a gauge for determining whether an asset has become overheated or excessively sold. Values approaching 30 generally indicate that selling pressure may be exhausting itself, increasing the probability of a near-term rebound despite a potentially weak overarching trend.
Short position liquidations create $1.40 price magnet effect
Liquidation heatmap data from Binance XRP/USDT provides additional confirmation for the relief-rally scenario.
The data visualization reveals a more substantial concentration of short liquidation liquidity positioned above the current price level compared to long liquidation liquidity situated below it. The most significant upside cluster, totaling approximately $236.5 million, is concentrated around the $1.37–$1.40 zone, based on CoinGlass data.
Liquidation heatmaps frequently identify zones where prices might gravitate to eliminate concentrated leveraged positions.
Traders maintaining short positions above the spot price level may face forced buybacks of their exposure should XRP begin rallying from current $1.13 price levels, providing additional momentum to a potential move toward the $1.39–$1.40 range.
Analyst projects XRP rebound could reach $8
An additional long-term technical chart from analyst Cryptollica indicates that XRP's upcoming rebound might represent part of a more extensive bottoming formation.
The analysis displays XRP's 10-day RSI positioned near the low-30s, approaching the level that has historically emerged during significant accumulation periods.
"In 13 years, XRP has only been this washed out 3 times," Cryptollica said in a Sunday post, adding:
"The first 2 times, the crowd laughed, ignored it, and only understood the setup after price had already left."
The chart shared by Cryptollica also illustrates XRP trading above the lower boundary line of a massive ascending channel, representing a long-term support level that has connected several macro lows dating back to 2017.
This trend line is currently positioned near $0.75, suggesting XRP might experience one additional downside sweep before initiating a more substantial recovery phase. During previous market cycles, tests of this support zone have preceded significant upward price expansions.
Before entering a more comprehensive bull-market phase, XRP could initially retest the channel support level, with the channel's upper boundary establishing a long-term price target near $8 should the historical pattern repeat itself.