XRP Drops Another 3.5%: What Is Going On?
XRP is down 3.7% over the past 24 hours, prompting chart analyst Ali Martinez to suggest a potential local bottom.On the other hand, prominent analyst Cryptoinsightuk sees a potential relief rally as possible as its four-hour relative strength index reached deeply oversold levels.The analyst expects at least a relief rally but cautioned that oversold conditions do not necessarily confirm a market bottom.A potential move toward $1.30 could fill a fair value gap and establish a higher price low near the bottom of the trading range.For stronger bullish confirmation, the analyst wants to see XRP make a lower price low while the RSI forms a higher low, signaling weakening selling momentum.Could XRP Drop Before Rebounding?Cryptoinsightuk noted a possible descending triangle pattern.If XRP holds current levels, the recent breakdown could prove to be a bearish fakeout. This could trigger a rebound toward range highs, supported by favorable liquidity conditions.However, a sweep below the range lows remains possible, with $1.22 still a downside target.The analyst sees support zone above $1.30 and below $1.35 as a potential area for spot accumulation or low-leverage long positions but is waiting for clearer confirmation before entering a trade.Image: Shutterstock Read Also: