XRP's monthly relative strength index (RSI) reached 41.6 following a recent sell-off that tested the $1 support level, according to market expert Sam Daoud. Daoud identified this reading as the lowest RSI level XRP has recorded, occurring only four times in 13 years. The signal previously appeared in 2017, 2020, and 2022, with subsequent rallies ranging from 1,000% to 60,000%, though those percentage gains started from significantly lower price bases.
XRP Monthly RSI Reaches 41.6 in Oversold Zone
Sam Daoud reported that XRP's monthly RSI fell to approximately 41.6. This reading represents what Daoud characterized as a deep-oversold zone that XRP has reached only four times across 13 years. The RSI measurement indicates the token's current position relative to its historical trading range.
The token tested the $1 support level during the recent sell-off before recovering to $1.13 on the daily chart.
Historical Rallies Followed Similar RSI Readings
The three previous instances when this RSI signal appeared preceded substantial price increases. In 2017, XRP rallied from under $0.01 to $3.84. The 2020 and 2022 occurrences also preceded rallies, with percentage gains ranging from 1,000% to 60,000% across the three cycles.
Daoud noted that these historical percentage outcomes occurred from extremely low starting price levels. When XRP traded under a penny in 2017, the subsequent move to $3.84 represented a five-figure percentage gain. Applying similar percentage mathematics to current price levels would imply prices in the hundreds of dollars.
Current Price Recovery and Cycle High Context
XRP's previous cycle high reached $3.65. From current levels around $1.13, a return to that cycle high would represent approximately a 3x move. Daoud presented this recovery scenario as more plausible than the extreme percentage gains seen in earlier cycles.
The daily chart shows XRP recovered to $1.13 after testing $1 support last week. The report noted that movement beyond $5 would require fundamental catalysts beyond technical RSI strength, specifically mentioning the CLARITY Act and exchange-traded fund (ETF) demand as potential drivers.
FAQ
What RSI level did XRP reach according to Sam Daoud?
XRP's monthly RSI reached 41.6, which Sam Daoud identified as the lowest reading in 13 years and a level XRP has only reached four times total.
What happened after previous similar RSI readings in 2017, 2020, and 2022?
XRP rallied substantially after each occurrence, with percentage gains ranging from 1,000% to 60,000%. The 2017 rally took XRP from under $0.01 to $3.84. However, these gains started from extremely low price bases.
What is XRP's previous cycle high and current price level?
XRP's previous cycle high was $3.65. The token currently trades around $1.13 after recovering from testing the $1 support level during the recent sell-off.
