XRP, the bank and cross-remittances focused cryptocurrency, has crashed about 71.7 percent from its all-time high (ATH) value of about $3.65 recorded in July 2025. Over the past month, the digital asset has remained range-bound – trading within a narrow price area between $1 to $1.10. However, a bullish setup is now surfacing that may help XRP finally break through the range.
XRP shows signs of bullish setup
In an X post on Wednesday, seasoned cryptocurrency analyst Ali Martinez remarked that following its crash from its ATH value, XRP is now trading at extremely oversold levels. At the same time, new buy signals are starting to emerge.
The oversold levels can be computed through a momentum trading indicator called Relative Strength Index (RSI).
The RSI ranges from 0 to 100, and measures how strongly an asset has been moving. Readings below 30 are typically considered oversold, while above 70 are seen as overbought.
The analyst added that the Tom Demark Sequential indicator has flashed a buy signal on the XRP monthly chart. The indicator is now hinting that a macro shift from bearish to bullish might be underway for XRP.
For the uninitiated, TD Sequential is a technical indicator that is specifically designed to identify potential trend exhaustion by counting a series of price candles that meet specific conditions.
A buy signal suggests downside momentum may be exhausting, and a rebound could follow, while a sell signal suggests upside momentum may be weakening.
Martinez gave several past examples when XRP rallied following a buy signal from the TD Sequential indicator. For instance, a buy signal in April 2020 preceded a massive 1,074 percent rally.
Similarly, a TD Sequential buy signal in August 2022 resulted in a rally of 973 percent for the cryptocurrency. On the contrary, a sell signal flashed in April 2025 led to a 57 percent decline for XRP.
Investors are holding XRP
Meanwhile, investor behavior shows that they are not choosing to liquidate their XRP holdings. On July 31, exchange data displayed that XRP holders are withdrawing their holdings from exchanges at the fastest pace since 2021.
In the same vein, speculation-driven derivatives market activity also appears to have taken a backseat, at least temporarily. On Friday, XRP heatmap showed that there is a reduced risk of sharp liquidation swings.
