Enormous 100% XRP Spike: Market Direction Flip?

XRP/USDT Chart by TradingView

Following a sharp correction that saw it fall from the $3.20 range earlier in October, XRPs price stabilized around $2.45 at the same time as this surge. The strength of the on-chain recovery suggests that selling pressure may be abating, even though the token is still well below its major moving averages.

XRP is close to overselling

A flattening RSI near 35-37 and declining bearish volume support a possible bottom forming near $2.30-$2.40 in XRP‘s chart structure, which suggests oversold conditions from a technical perspective. The candle’s noticeable narrowing indicates that the downtrend is about to pause as accumulation starts.

The beginning of a momentum reversal toward $3.00 may be indicated if buyers are able to push XRP back above $2.65-$2.70, particularly as short positions start to release. Additionally, the increase in the volume of on-chain payments points to increased activity from cross-border or institutional players, who tend to be more active during market cycle transitions.

Despite XRPs recent collapse, this could support the idea that it is not yet finished.