XRP Chart Signals Potential Bottom as ETFs See $1.1B Inflows

Crypto analyst Steph has highlighted an “interesting” development on the 3-week XRP price chart. He revealed that the Stochastic Relative Strength Index (RSI) has dropped to 0.00 on this timeframe, an event Steph describes as “extremely rare.” According to his analysis, this has only happened once before: at the 2022 bear market bottom. The significance of this signal on such a high timeframe, Steph explains, is that it typically occurs only when selling pressure is fully exhausted, indicating that momentum to the downside has dried up.

However, Steph cautioned that this does not guarantee an instant price reversal. He noted that the last time this signal appeared, the XRP price entered a prolonged accumulation phase before its next major upward move. The analyst interprets the current signal as suggesting that downside risk is now “structurally limited” and that long-term holders are absorbing supply rather than distributing it. Steph emphasized that these signals tend to mark cycle lows rather than short-term trading opportunities, framing the current moment as a potential foundational period for the next leg higher.

Complementing the technical picture is robust institutional interest. XRP exchange-traded funds (ETFs) have maintained a daily inflow streak since the Canary’s fund launched on November 13. This consistent demand has propelled the total net assets held by these funds to over $1.1 billion, a substantial figure that underscores significant institutional appetite for the altcoin. These inflows represent a steady source of buying pressure and provide a fundamental counterweight to retail market volatility.

The sustained capital allocation into XRP ETFs suggests that institutional investors are viewing current price levels as an attractive entry point for long-term exposure. This activity aligns with analyst Steph’s observation of long-term holders absorbing supply, creating a confluence of technical and fundamental factors that could support a price floor.

Despite the promising long-term signals, XRP faces immediate technical hurdles. According to data from CoinMarketCap, the XRP price is currently trading around $1.87. Analyst CryptoXLarge stated that on the weekly chart, the price remains below a descending trendline around the 8 to 21 Exponential Moving Average (EMA) levels. He identified a critical support zone around $1.95, which aligns with the Fibonacci 0.5 retracement level and the 89-week EMA—a support that has held throughout the year.

CryptoXLarge outlined two potential scenarios based on a weekly close relative to this $1.95 level. A weekly close below it, he warned, could increase the probability of a move down toward the $1.60 support, which corresponds to the Fibonacci 0.618 level. Conversely, a weekly close above $1.95 may boost buying interest and trigger a relief rally toward $2.30 and then $2.70. This sentiment is echoed by analyst Crypto King, who suggested that a reclaim of $1.98 could eventually propel XRP as high as $3.66.

The market is thus at an inflection point. The rare Stochastic RSI signal and strong ETF inflows build a case for a structural bottom and limited downside. Yet, the price action remains constrained, needing to overcome defined resistance to confirm a bullish reversal. Investors are now watching for a decisive weekly close above or below the $1.95 pivot to determine whether the next major move will be toward the $1.60 support or a rally beginning at the $2.30 resistance.