Is the retail investor shakeout nearing its end? XRP faces the final hurdle for a rebound
Is the retail investor shakeout nearing its end? XRP faces the final hurdle for a rebound
Although the price decline of XRP (Ripple) has recently intensified, an analysis suggests that this move may represent a final shakeout phase designed to flush out weak holders before a full-scale rally. Contrary to prevailing market fear, technical indicators indicate that the current zone reflects a severely undervalued condition and signals a critical period ahead of a large expansion.
According to cryptocurrency-focused outlet Bitcoinist on February 11 (local time), crypto analyst Diana assessed that the current downward movement could mark a major inflection point in XRP’s market structure. She explained that XRP is currently trading within a bearish corrective channel, a pattern that typically concludes with a liquidity sweep intended to push weak hands out of the market before smart money enters.
Historically, discrepancies in which prices fall despite strengthening fundamentals have often preceded periods of deep undervaluation. At present, the weekly Relative Strength Index (RSI) has dropped into oversold territory, leaving room for further downside in the short term. Diana identified the $0.84 level—where the 161.8% Fibonacci extension intersects with the 200-week moving average—as a key demand zone with a high probability of a rebound.
However, she emphasized that XRP bulls must defend the $0.69 support level to maintain the long-term bullish structure. If the $0.69 support fails on the weekly chart, the shakeout hypothesis could be invalidated. The analyst’s strategy focuses on confirming a supportive reaction near $0.84, followed by price revaluation and an eventual recovery toward a final target of $3.65.
This outlook also aligns with the completion process of a massive eight-year cup-and-handle pattern formed since the 2017 peak. After bottoming in 2020 and 2021, a large cup-shaped formation took XRP back toward the $3.60 region by 2025, with the recent decline interpreted as the formation of the handle portion of the pattern.
The cup-and-handle is a well-known bullish continuation pattern, and as long as the support zone between $0.84 and $0.69 is successfully defended, the uptrend remains intact. The analyst projected that holding this range could allow momentum to extend beyond the initial target of $3.65 and potentially expand toward the $7 range or higher over the long term.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses based on its content. The information provided should be interpreted solely for informational purposes.
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