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XRP has flashed an oversold signal on the hourly chart amid extended profit taking in recent weeks. The payments network's cryptocurrency has been in a steady drop since August's start as the broader markets weighed macroeconomic concerns.
XRP extended its drop from Aug. 8 high of $3.38, marking several days from this date in red. The decline caused XRP the loss of the daily SMA 50 at $2.99, which it had been above since early July.
XRP is entering the third day of trading below the daily SMA 50, hitting a low of $2.78 in early Friday session.
At press time, XRP was trading down 2.76% in the last 24 hours to $2.8, with the broader crypto market witnessing liquidations of $312 million, according to CoinGlass data.
On Friday, the market awaits Fed chair Jerome Powell's speech in Jackson Hole, Wyoming, which might be his last before his term as Fed chair expires in May 2026, and it is expected to offer increased clarity about the interest rate outlook.
XRP flashes oversold signal
The RSI, a momentum indicator has dropped below 30 on XRP's hourly chart, hinting at an oversold signal.
Below the 30 level is considered oversold, and above 70 readings for the RSI are considered overbought. It now remains for XRP to confirm oversold conditions that might precipitate a relief rally, or at least a dead cat bounce, in the short term.
The broader crypto market recovery will be watched, as well as investor sentiment, to determine XRP's next move.
In positive news, Ripple announced today that it has signed a new memorandum of understanding (MOU) for SBI VC Trade, a subsidiary of SBI, indicating its plan to distribute Ripple USD (RLUSD) in Japan. RLUSD is issued on XRP Ledger as well as on the Ethereum blockchain.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team