Market analyst Charting Guy has insisted that XRP has not slipped into bearish territories despite the weak monthly RSI.
His latest analysis comes on the back of the ongoing downtrend impacting XRP and the broader crypto market. For context, despite a recent recovery push to the $2.2 price region this week, XRP has collapsed over 24% since October.
With a 10% drop so far in November, XRP is now on track to record a second consecutive monthly decline for the first time since March. Amid the downward push, some market pundits have identified a weakening relative strength index (RSI) trend. However, Charting Guy believes XRP remains in a favorable position.
XRP Still Not Bearish in the Slightest
“XRP is still NOT bearish in the slightest,” he said in a Thursday analysis, building on an earlier report he presented last month. According to the analyst, the ongoing struggles have not turned the overall market bearish. Instead, XRP is merely looking to build support at the previous cycle peak as well as a golden pocket top.
For context, data from the accompanying chart shows XRP forming a solid base above the 2021 bull run peak. Notably, during that bull run, XRP soared to a high of $1.96 in April 2021, and eventually faced resistance at this level, marking the cycle top.
Interestingly, in the ongoing cycle, XRP has not only recovered this $1.96 high, but it has maintained its hold above the pivotal level, flipping it to support throughout this year. According to Charting Guy, XRP’s current mission is to solidify the support in this region before its eventual upsurge.
Weakening Monthly RSI
He called attention to reports from other analysts, who confirmed that the RSI on the monthly chart has continued to lose steam. Notably, since recovering to a high of 73.08 in July during the rally to the $3.66 peak, the XRP monthly RSI has collapsed. At press time, the RSI now sits around 57.
With this gradual decline, some analysts have suggested that XRP may be weak, and this could lead to further declines. However, Charting Guy kicked against this interpretation. He especially pointed out that the monthly RSI actually topped for this year when it hit 84.4 in January, and has since been dropping.
According to him, the RSI has been weak throughout this year, but XRP has still not witnessed intense price drawdowns. Notably, XRP is still up 6.82% this year despite the recent declines. In contrast, Bitcoin (BTC) has dropped 1.92% within the same period, and Ethereum (ETH) is down 8.37%.
Charting Guy stressed that despite the RSI seeing weak momentum all year, XRP has only consolidated and defended its support. He suggested that the ongoing trend is likely a re-accumulation phase that leads to rapid declines in technical indicators that could lead to their reset, while the price remains stable.
Data from his chart shows that, upon recovery, XRP could retest multiple Fibonacci levels. The first two zones are the 0.888 and 1 Fib levels respectively at $2.27 and $3.31. Beyond these, XRP could target Fibonacci extensions around 1.272 and 1.414, corresponding to new peaks of $8.29 and $13.38. The last Fib level rests around 1.618 at $26.6.
Meanwhile, in previous analyses, Charting Guy had suggested where he thinks XRP may be headed once it recovers from this consolidation and engineers a bullish push. Recently, he said the consolidation was a test of investor resilience, projecting a possible run to $8 once bullish momentum resumes.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
