XRP is seen approaching a crucial phase as several technical indicators are beginning to signal that the crypto asset may be forming a base before the next big move.
At the time of writing, the price of XRP is currently at $1.3795, up 0.04% since it opened early Thursday in the Asian session.
After a long period of correction, selling pressure is easing while the price is now moving in a compression state that often occurs before a strong surge.
According to crypto analyst Diana, the monthly chart shows that this situation is more of a 'reset' process after the previous big rise, rather than a sign of a market collapse.
The $1.30 to $1.35 zone is now seen as an important support area that has the potential to be the basis for a price recovery if it is successfully defended.
At the same time, crypto analyst EGRAG CRYPTO also drew attention to the weekly RSI indicator of XRP which is now approaching the most extreme oversold area in the asset's history.
This has occurred at several key moments in the past, including in 2014, 2015, 2018, 2020, and 2022, most of which occurred near market lows before prices began to reverse direction.
While this does not guarantee that prices have reached an absolute bottom, it does indicate that the market may be entering a bottom-forming phase.
If key support holds and demand picks up again, XRP has the potential to begin a stronger recovery in the next cycle.
