XRP has experienced a notable decline over the past four days, dropping from a peak of $2.41 on January 6 to as low as $2.06 by January 8. This downturn is attributed to profit taking after a strong start to 2026, with the digital asset entering its fifth day of price drop. Analysts are now indicating that XRP may be oversold.
Crypto analyst Steph is Crypto has pointed to the stochastic RSI, which currently sits below 25 on a three-week chart of XRPUSDT from Binance. An RSI reading of under 30 typically signifies oversold conditions. According to Steph, prior instances of XRP reaching similar RSI lows in 2023 and 2024 resulted in substantial price surges of 256% and 857%, respectively. He expressed optimism for XRP’s future, predicting that “XRP will hit $5 before you know it.”
In another analysis, Steph highlighted a significant signal on XRP’s weekly chart. The weekly RSI has surpassed its moving average, a development usually indicative of a momentum shift favoring buyers. Historically, since 2024, each previous crossover of this nature on the weekly timeframe has led to considerable price advances. Should this trend hold, market watchers will eagerly anticipate a repeat performance.
Despite the recent declines, XRP has maintained a broad trading range between $1.77 and $2.41 since mid-November 2025. The surge at the beginning of 2026 allowed XRP to break the daily moving average of 50 at $2, a level that had previously constrained its price action since October. Investors will be keenly observing whether XRP can establish this level as support, which could sustain a bullish trajectory.
Looking ahead, a critical breakout for XRP is anticipated at $2.56, coinciding with the daily moving average of 50. A successful breach of this resistance might pave the way for a rise toward $3 or even $3.5.
Meanwhile, institutional interest in XRP remains strong, highlighted by recent announcements such as Evernorth’s partnership with Doppler Finance to explore liquidity and treasury use cases. This engagement may bolster XRP’s market prospects as investors monitor the evolving landscape.
