Crypto market is going through a rough period as we head into next week and first Monday of February. As the Bitcoin price hovers slightly below $100k, XRP lost around 4.2% value today, now trading at $2.83.
However, analyst ‘Cryptoinsightuk’ said to his 41k followers on X that XRP holders do not have a lot of reason to be worried. “Many people panicking right now, but honestly $XRP looks completely fine,” the analyst wrote.
Recent XRP Price Action
XRP made quite a run in late November and early December. The price shot up, breaking through several key resistance levels. Now it’s taking a breather in what traders call a consolidation phase. The XRP price is holding steady around $2.75-$2.80, right where it previously found support.
The trading volume tells an interesting story too. We saw huge volume during the rally up. But lately, it’s been quieter, with fewer traders jumping in. That’s pretty normal after a big move up.
Many people panicking right now, but honestly $XRP looks completely fine.
— Cryptoinsightuk (@Cryptoinsightuk) February 2, 2025
RSI on the daily has cooled off nicely.
Stochastic RSI is in the floor, the last time we saw the Stochastic this low on the daily, it marked the local low.
On the 4HR, we are coming up out of the oversold… pic.twitter.com/SOVDpitWHX
The daily RSI sits at 48.49, just below the middle point of 50. It’s been dropping from overbought levels of around 70 during the rally. “RSI on the daily has cooled off nicely. Stochastic RSI is in the floor, the last time we saw the Stochastic this low on the daily, it marked the local low,” Cryptoinsightuk noted.
Looking at shorter timeframes, the analyst spotted some positive signs. “On the 4HR, we are coming up out of the oversold area on the RSI and Stochastic RSI whilst holding previous range highs as support,” he explained.
If XRP wants to get moving again, it needs to push past $3.00 and take out the $3.20 resistance zone. On the flip side, if support breaks down, we might see prices head toward $2.50 or even $2.20. But for now, as the analyst puts it, “Nothing is broken or changed at all.” This looks like a normal cooling-off period after such a strong rally.
Read also: Ripple (XRP) Releases a New Update on Stablecoin Regulation
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