The crypto FGI has once more dropped to excessive worry, however historic information suggests XRP would possibly leverage this positioning for a 500% pump.
Market analyst Steph (@Steph_iscrypto) highlighted the scenario in a current put up on X. Notably, his commentary got here on the again of the most recent XRP price crash, triggered by a broader crypto market stoop amid macroeconomic considerations in the US.
For context, regardless of a gentle 1.88% improve yesterday, XRP is additionally struggling losses over the previous few days following an enormous 11.6% crash on Monday, Feb. 24.
Crypto FGI Hits 5-Month Low of 25
Expectedly, amid the market turbulence, the crypto Fear and Greed Index (GPI), a instrument that measures crypto investor sentiment, dropped to 25 yesterday, Feb. 25, for the primary time in 5 months. For context, the index reads from 0 to 100, with decrease values indicating bearish sentiments.
Steph called attention to the crash yesterday, which introduced the index to the “Extreme Fear” degree for the primary time this 12 months. Nonetheless, the market analyst highlighted an attention-grabbing historic reality related to XRP and the crypto FGI.
Particularly, the final time the FGI collapsed to 25, signaling Extreme Fear, was in September 2024. On the time, XRP was buying and selling for $0.5249. Nonetheless, after this drop, costs began recovering and sentiment picked up. XRP witnessed a slight rebound however remained at the mercy of the bears till the U.S. election in November 2024.
Following Donald Trump’s victory, XRP skyrocketed, hovering to reclaim the $1, $2 and $3 psychological ranges inside 4 months. At its seven-year peak of $3.4 in January 2025, XRP recorded a powerful 547% improve from its Sept. 9, 2024 worth after the FGI hit 25 and recovered.
With related traits repeating, Steph’s disclosure implies that when costs rebound, XRP might set itself up for one more huge upsurge. Nonetheless, the asset is at present at a greater place amid the current FGI drop to 25, at present buying and selling for $2.29, as opposed to the $0.52 worth final September.
XRP RSI and CCI at Extra Bullish Positions
As well as, a more in-depth look at the each day chart reveals that the Relative Energy Index (RSI) and the Commodity Channel Index (CCI), each momentum indicators, are in additional bullish positions at present than they had been final September. This bolsters the probabilities of an XRP uptrend.
Significantly, when the FGI hit 25 in September 2024, as XRP traded for $0.52, the RSI stood at 43.52, whereas the CCI had a price of -91.07. Though these positions didn’t significantly sign that XRP was extremely oversold, they indicated that the asset nonetheless had extra room for progress.
Now, with XRP altering arms at $2.29 and the FGI studying 25, the RSI stands at 37.93, with the CCI hovering round -144.81. Apparently, the CCI beneath -100 confirms that XRP is oversold and set for a rebound, whereas the RSI alerts extra room for additional enlargement. These indicators are in additional bullish positions.
Ought to XRP replicate the five hundred% improve, a rally from the present place would push its worth to a brand new all-time excessive of $13.74. Notably, Chartered Market Technician Tony Severino suggested last month that XRP was on the verge of claiming a $13 worth, citing a bull flag construction.
DisClamier: This content material is informational and shouldn’t be thought of monetary recommendation. The views expressed on this article could embody the writer’s private opinions and don’t mirror The Crypto Primary opinion. Readers are inspired to do thorough analysis earlier than making any funding selections. The Crypto Primary shouldn’t be accountable for any monetary losses.
