XRP Price Prediction: Weekly RSI Flashes Major Buy Signal – 200%+ Gain Ahead?

XRP (XRP) has gone down by nearly 8% in the past week after losing the critical $2 support. However, a historically accurate buy signal could be hinting at an upcoming recovery that could knock bears’ socks off.

Earlier today, a delayed inflation report from November initially pushed the price higher during the New York session. However, this proved to be a liquidity grab as the trend quickly reversed, causing the price to drop from around $1.92 to $1.84.

Inflation came in at 2.7%, which was 30 basis points below analysts’ expectations for the month. Nonetheless, this positive report did not change the market’s baseline scenario in terms of future interest rate cuts as data from FedWatch still indicates that only a 24% of analysts think the Fed will lower rates in January.

XRP ETF Net Inflows and AUM – Source: SoSoValue

Despite its recent losses, XRP exchange-traded funds (ETFs) have surpassed the $1 billion mark in assets in just a few weeks as Wall Street’s appetite for this token continues to be strong.

These vehicles have brought in positive net inflows for 23 days in a row. Meanwhile, Crypto liquidations in the past 24 hours spiked to a combined total of $440 million, as both bulls and bears fell victim to the latest surge in volatility.

Weekly Chart Shows That XRP Could Be Preparing to Make a Comeback

Regardless of the latest turmoil, the weekly chart for XRP has sent a massive buy signal that could result in significant gains if historical patterns repeat.

XRP/USD Weekly Chart (Binance) – Source: TradingView

Since 2020, the Relative Strength Index (RSI) has only hit the current level of 35 three times. In these past three instances, the price trend has reversed and XRP has delivered gains exceeding 200%.

The most recent of these three scenarios actually delivered total gains of 736% after Ripple emerged victorious from its long-standing legal battle against the United States Securities and Exchange Commission (SEC).

The lowest the RSI has gone during this period was 28. Hence, the downside risk at this point based on these historical patterns is quite low. Meanwhile, the upside potential is so massive that it might be worth the risk.

Key Level to Watch for A Reversal Would Be $2.2

Looking at the latest price action, the lowest that XRP might go during this bearish cycle, if this bullish signal holds, would be around $1.75. That could also be the best entry price to fully take advantage of the token’s potential upside.

XRP/USD Daily Chart (Coinbase) – Source: TradingView

The daily chart shows that this could be the next area of support to watch if the downtrend continues. At this point, XRP is hitting the lower bound of a falling wedge.

If the token bounces strongly off this level and breaks above the $2.2 area, that would invalidate its bearish structure and could mark the beginning of this major next leg up for XRP.

In this lower time frame, the RSI shows a compression pattern. However, the oscillator has been trending upwards even though the price has kept declining. This is also an early signal that negative momentum is easing.