BEARISH 📉 : XRP loses 50% value as market momentum weakens

XRP has experienced a significant decline, with its price dropping from nearly $2.80 in October 2025 to about $1.42. This sharp drop was accompanied by extreme momentum indicator readings.

Key Technical Indicators

The daily relative strength index (RSI) fell to around 17, marking a 12-year low.
Historically, similar RSI lows have led to quick rebounds, although past performance does not guarantee future results.
Previous instances of low RSI numbers resulted in bounces of approximately 70% and 65% in short timeframes.

Market Commentary and Predictions

Crypto researcher Ripple Bull Winkle suggests a potential 15%-40% bounce following extreme RSI readings.
Traders are monitoring for signs of a short squeeze or market corrections.
Potential liquidity zones exist above $2.25 and between $4.20-$4.40, which could trigger accelerated movements if hit.

Current Market Position

XRP’s pair trades show relative strength, with the XRP/ETH range stable since August 2025 and XRP/BTC recovering after a breakdown.
XRP dominance metrics have remained steady around 3.5%–3.6%.

Considerations for Traders

Key focus areas include volume, daily closes above resistance levels, and RSI movement out of extreme zones.
A break above the $2.25 level could indicate further targets, while failure to sustain a bounce may keep sellers dominant.
Risk management is critical, as rebounds after oversold conditions can be rapid but brief.

The current setup presents both opportunities and risks, with traders divided on whether this is a temporary relief bounce or the start of a larger trend reversal.