An XRP death cross and liquidation signals align for a possible 25% relief rally in the short term, while one analyst eyes a longer-term rebound toward $8.
Multiple XRP (XRP) indicators have hinted at a potential 25% relief rally in the coming weeks.
As of Monday, XRP’s 20-week exponential moving average (20-week EMA, green) near $1.40 was on the verge of crossing below its 200-week EMA (blue) near $1.39.
A confirmed weekly close below the longer-term average would mark a rare death cross between the two trend gauges.
XRP/USD weekly chart. Source: TradingView
In the past, XRP’s previous 20-week/200-week EMA crosses were followed by relief rebounds back toward the 200-week EMA. That includes a roughly 20% recovery in 2019 and a larger 82.7% rebound in 2022.
A similar mean-reversion move this time would put the $1.39–$1.40 area in focus, implying roughly 23%–25% upside by July from XRP’s current price near $1.13.
XRP’s weekly relative strength index, or RSI, was also hovering just above the oversold threshold of 30 on Monday.
The RSI measures whether an asset is becoming overheated or overly sold. Readings near 30 typically suggest that sellers may be running out of momentum, raising the odds of a short-term rebound even if the broader trend remains weak.
Binance XRP/USDT liquidation heatmap data further supports the relief-rally setup.
The chart shows a heavier concentration of short liquidation liquidity above the current price than long liquidation liquidity below it. The largest upside cluster, of around $236.5 million, appears around the $1.37–$1.40 zone, according to CoinGlass data.
XRP/USDT one-month liquidation heatmap. Source: CoinGlass
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
