‘XRP Is Oversold,’ Analyst Reveals but Shares Potential Target

XRP fell for four days at a stretch from a high of $2.41 on Jan. 6. XRP marked days of sharp declines this week, reaching as low as $2.06 on Jan. 8.

XRP’s price drop, contributed to by profit taking after a strong run at 2026’s start, is entering its fifth day, with analysts now suggesting oversold conditions.

According to crypto analyst Steph is Crypto, XRP is oversold. The analyst shared a three-week chart of XRP/USDT on Binance with the stochastic RSI below 25. An RSI reading of below 30 suggests oversold conditions.

According to the chart shared, similar instances when XRP reached such RSI lows in 2023 and 2024 foreshadowed price surges of 256% and 857%, respectively.

In a separate tweet, the analyst predicts XRP reaching $5. “XRP will hit $5 before you know it,” he wrote.

XRP flashes powerful signal

In another tweet, Steph is Crypto highlighted that XRP had just flashed a powerful signal on the weekly chart.

This is as the weekly RSI has broken back above its moving average. This is important because it usually only happens when momentum starts to shift decisively in favor of buyers. The analyst noted that since 2024, every previous RSI break above the moving average on the weekly time frame led to major gains and follow-through in price over the weeks after.

A similar repeat in price action will now be watched if this historical trend is validated.

XRP stays in range

XRP continues to trade in a broad range between $1.77 and $2.41 since mid-November 2025. A five-day surge at 2026’s start has caused XRP’s price to surpass the daily MA 50 at $2, which capped its price action since October. It will be watched in the short term to see if XRP will convert this level into support to sustain bullish momentum.

The next crucial breakout for XRP lies at $2.56, which coincides with the daily MA 50. A break above here might open the pathway toward $3 and $3.5.

Meanwhile, institutional interest in XRP continues, as Evernorth recently announced its partnership with Doppler Finance to explore liquidity and treasury use cases.