Karla Barker 
XRP Shows Oversold Signals After Four-Day Decline
XRP has been declining for four consecutive days, dropping from a high of $2.41 on January 6th to as low as $2.06 by January 8th. This downward movement comes after what was actually a pretty strong start to 2026, with many traders apparently taking profits after that initial surge.
Crypto analyst Steph is Crypto has been looking at the charts and thinks XRP might be oversold right now. He shared a three-week chart of XRP/USDT on Binance showing the stochastic RSI below 25. For those who follow technical analysis, an RSI reading below 30 typically suggests oversold conditions—meaning the asset might have been sold off too aggressively and could be due for a bounce.
Historical Patterns Suggest Potential Rebound
What’s interesting is the historical context Steph points to. According to his analysis, similar instances when XRP reached such RSI lows in 2023 and 2024 actually foreshadowed some pretty significant price surges—256% and 857% respectively. Now, I should note that past performance doesn’t guarantee future results, but it’s worth paying attention to these patterns.
In a separate tweet, the analyst made a bold prediction: “XRP will hit $5 before you know it.” That’s quite a jump from current levels, but he seems confident based on the technical signals he’s seeing.
Weekly Chart Shows Momentum Shift
There’s another signal worth mentioning. Steph highlighted that XRP just flashed what he calls a “powerful signal” on the weekly chart. The weekly RSI has broken back above its moving average, which apparently doesn’t happen often. When it does, it usually indicates momentum starting to shift decisively in favor of buyers.
Since 2024, every previous RSI break above the moving average on the weekly timeframe led to major gains and follow-through in price over the subsequent weeks. So traders will be watching closely to see if this pattern repeats itself.
Range Trading Continues with Key Levels in Focus
XRP has actually been trading in a pretty broad range between $1.77 and $2.41 since mid-November 2025. That five-day surge at the start of 2026 pushed the price above the daily MA 50 at $2, which had been capping price action since October.
The short-term question is whether XRP can convert this $2 level into support to sustain any bullish momentum. The next crucial breakout point lies at $2.56, which coincides with the daily MA 50. A break above here might open the pathway toward $3 and $3.5.
Meanwhile, institutional interest in XRP continues. Evernorth recently announced its partnership with Doppler Finance to explore liquidity and treasury use cases. This kind of real-world adoption and institutional attention could provide some fundamental support beneath the technical analysis.
It’s worth remembering that crypto markets can be volatile, and technical indicators are just one piece of the puzzle. But when multiple signals align—oversold conditions, historical patterns suggesting rebounds, and institutional interest—it certainly makes for an interesting setup to watch.