XRP Poised for Strong Rebound as Technical and On-Chain Signals Align

XRP appears to be entering a critical recovery phase as multiple technical and on-chain indicators suggest potential for a strong rebound. Recently, XRP dipped below its 200-day moving average near $2.06 but quickly reclaimed the level with significant trading volume. This “flush and reclaim” formation often signals capitulation by sellers and the entry of major buyers absorbing panic-driven sell-offs. Historically, similar XRP price patterns have preceded short-term rallies ranging from 30% to 50%, aligning with a potential move toward the $1 mark if bullish momentum continues.

Another strong bullish signal is XRP’s Relative Strength Index (RSI), which currently hovers around 27 — a level that indicates highly oversold conditions. In past market cycles, RSI reversals from below 30 have triggered multi-week recoveries as short sellers liquidated their positions and fresh liquidity entered the market. This pattern points toward renewed investor confidence and a possible price rebound.

Beyond technicals, on-chain data also supports a recovery narrative. The recent surge in XRP Ledger transactions and payment volumes, even amid price declines, suggests a strengthening network utility. Such divergence between price and blockchain activity often precedes renewed speculative optimism, an essential driver for crypto market rebounds.

From a macroeconomic perspective, global market fears linked to tariff tensions seem to be easing, which could stabilize overall sentiment. Combined with Bitcoin’s relative strength, this environment may provide XRP with additional tailwinds for recovery.

While trader sentiment remains cautious, the setup for a potential breakout toward $1 appears realistic. However, confirmation above the $2.8–$3.0 range would be crucial for validating a sustained bullish reversal.