XRP appears to be setting up for a potential upward reversal as hourly trading indicators suggest it may be oversold. Traders and investors are keeping a close eye on short-term technical signals that could mark the beginning of a bullish rebound for the popular cryptocurrency.

Technical Indicators Point to Oversold Conditions

Recent data from the hourly chart shows that XRP has seen a dip that pushed key indicators toward oversold territory. The Relative Strength Index (RSI), a popular momentum oscillator, has dropped below the 30-level mark, signaling that the asset may be undervalued in the short term. This reading often precedes price corrections or reversals as market sentiment begins to shift.

When the RSI falls under 30, it often suggests that sellers may have overextended, leaving an opportunity for buyers to regain control. Historically, such conditions have preceded short-term rallies in XRP’s price, though traders are careful not to rely on a single indicator without further confirmation.

Market Sentiment and Rebound Potential

While the current price activity may seem bearish, traders who examine hourly movements see a different picture. The market often overreacts to sudden downside volatility, and temporary dips are not uncommon in crypto markets. The recent drawdown may represent a trap for impatient sellers and a window for more patient investors to accumulate before the next impulse move.

Volume analysis also lends weight to the rebound thesis. Despite the downward momentum, there hasn’t been a notable spike in sell volume — a common feature in liquidation-driven declines. Instead, the lower-volume movement suggests some caution among traders, supporting the idea of a short-term reversal.

Key Support Levels to Watch

XRP is currently holding near a key support zone that has historically acted as a springboard for gains. Holding this range could build confidence for a rebound, particularly if buying pressure increases in upcoming sessions. Analysts will be watching this support level closely alongside momentum indicators to assess potential entry points.

Another factor contributing to the possibility of a rebound is the broader crypto sentiment. If Bitcoin and Ethereum maintain stability in the coming days, XRP may benefit from overall market optimism, triggering climbing interest from both technical and retail traders.

Technical chart showing oversold RSI pattern for XRP, signaling possible rebound.

Proceeding with Caution

Despite these bullish signs on the hourly chart, experienced traders caution against hasty decisions. Short-term indicators can be influenced by broader market instability, so it’s essential to pair technical analysis with macroeconomic context and risk management strategies.

Related: XRP Price: $12M Max Pain for Bears

In summary, XRP’s current position on the hourly chart indicates oversold conditions, increasing the chance of a short-term bounce. Traders will be looking for confirmation through price recovery, volume increase, or RSI divergence. If these align, it could spark renewed momentum for XRP’s next upward leg.