One analyst calls XRP oversold, another plans to short it

The bearish analyst has indicated at which price levels he wants to short XRP.

The weekly RSI for XRP has dropped into oversold territory until at least 2022, noted market analyst EGRAG CRYPTO said, adding that this could be a valid entry zone.

While their chart examines the broader picture of XRP, another analyst weighed in on the asset’s daily gains, noting that he wants to short it only after it reaches a certain level.

Most sold in history?

Known for its detailed analysis of several major cryptocurrencies, but with a primary focus on XRP, the latest EGRAR chart on the cross-border token showed that the asset is now “entering the oversold zone” in its history.

They explained that when XRP falls to such RSI levels, it has historically bottomed, as it did in 2014, 2015, 2018, 2020 and 2022. This means that the token has not seen such oversold numbers in four years.

However, EGRAR disclosed that although XRP has indeed reached the macro bottom at similar levels, this does not mean that “the exact bottom will be printed immediately”, but it is entering its final stage, which looks like this:

Final solvency check
Collection of parties
Gradual return

“This is why many experienced investors start piling up in this area instead of trying to perfectly time the bottom,” they added before asking: “When XRP’s weekly RSI is in the oversold zone for its entire history… is that the worst time to buy? Or, one of the best times to start piling up?”

XRP weekly RSI. Source: ERGAG Crypto on X — XRP weekly RSI. Source: EGRAG Crypto on X

Or, maybe short XRP?

While EGRAG’s analysis focuses on the macro picture of XRP, Crypto Tony talks about the recent performance of the asset price and whether he sees the possibility of a change in the trend in the short term. The token dropped to $1.21 last week before rising to $1.55 where it declined and has since remained in a tighter $1.34 to $1.48 range.

Today it reached $1.42 and Crypto Tony saw an upcoming opportunity to short the upper border of this range at $1.47-$1.48. However, XRP has now declined and remains around $1.40 as of press time, which is the level where the bulls “need to turn to support” and they have yet to do so definitively.