Ripple’s cross-border token, XRP, has mirrored the broader cryptocurrency market’s downturn, experiencing a roughly 24% decline over the past month to its current price of $1.12.
Despite prevailing unfavorable conditions and concerns of a further slide, several key indicators suggest a potential recovery may be on the horizon.
Bullish Signal from Technical Indicator
The first bullish sign emerged from renowned analyst Ali Martinez, who shared on X that the Tom DeMark Sequential indicator has issued a buy signal for XRP, hinting at an imminent rebound. However, it’s worth noting that Martinez’s post was met with mixed reactions, with some users questioning the indicator’s past accuracy. Earlier this month, Martinez had also highlighted XRP’s $0.90 level, suggesting that a dip to this point could represent a “compelling long-term buying opportunity.”
Oversold Conditions on Relative Strength Index
The second factor pointing towards a potential recovery is XRP’s Relative Strength Index (RSI). The RSI recently fell significantly below the 30 mark and is now hovering around this level, indicating that the token is oversold and may be poised for a short-term rally. The RSI operates on a scale of 0 to 100, with readings above 70 typically signaling bearish sentiment.
Declining XRP Holdings on Binance
Thirdly, data from CryptoQuant reveals a declining trend in XRP tokens held on Binance, the world’s largest cryptocurrency exchange. The amount has dropped to a four-month low of approximately 2.68 billion XRP. This development suggests that investors are moving their holdings from the exchange to self-custody solutions, thereby reducing immediate selling pressure.
Sustained Institutional Interest
Furthermore, sustained institutional interest in Ripple’s native cryptocurrency warrants attention. Over the past several weeks, inflows into spot XRP exchange-traded funds (ETFs) have consistently surpassed outflows. This trend indicates that more conservative investors, including pension and hedge funds, are increasing their exposure to XRP. Consequently, financial institutions such as Bitwise, Canary Capital, Franklin Templeton, 21Shares, and Grayscale have been compelled to purchase actual XRP to back the shares of their respective ETFs. Since their introduction towards the end of 2025, these products have collectively seen net inflows of nearly $1.45 billion.
In contrast, spot Bitcoin and Ethereum ETFs have recently experienced outflows, suggesting a reduction in institutional investment in these two leading cryptocurrencies.
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