XRP’s recent tumble to test the key $1 support level may have opened a narrow window of hope: the token is showing a rare monthly RSI configuration that, historically, has preceded major rallies.
Market analyst Sam Daodu points out that the same monthly Relative Strength Index (RSI) signal appeared before three previous explosive runs—in 2017, 2020 and 2022—periods that produced gains ranging from about 1,000% to as much as 60,000%. Daodu notes, however, that those eye-popping percentages came from extremely low price bases (for example, XRP traded under a penny in 2017 before climbing to $3.84), so simple percentage comparisons to today’s price are misleading.
What’s striking now is the monthly RSI: Daodu says it has dropped to roughly 41.6, which he characterizes as the lowest monthly reading ever for XRP. That deep-oversold zone has only shown up four times in 13 years, making it a noteworthy technical signal that can sometimes mark the start of a multi-month or multi-year recovery.
That said, Daodu tempers expectations. Repeating the historic percentage moves from today’s higher price would imply unrealistically lofty targets. Instead, he suggests a more plausible path if the pattern “holds”: reclaiming the prior cycle high of $3.65 within the next year or two—a roughly 3x move from current levels near $1—would be a believable outcome, assuming broader crypto market sentiment turns positive.
Pushing substantially beyond that (to $5 and higher) would likely require fundamental catalysts, not just technical oversold conditions. Daodu highlights two possible drivers:
- Passage of the CLARITY Act, and
- Meaningful growth in ETF demand for crypto exposure.
Even if a bottom is already in, the report warns the ensuing rally could be slow to materialize—potentially taking until 2027 to fully play out. A relatively flat price over the coming summer wouldn’t necessarily invalidate the monthly RSI setup, since the signal is intended to unfold over a longer timeframe.
Image and chart credits: featured image created with OpenArt; chart from TradingView.com.
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