XRP’s 2 month RSI hovers near 50 as analysts highlight next market cycle signals

According to market analyst EGRAG CRYPTO, the most important signal in XRP’s current outlook is not coming from price action alone, but from a long-term momentum indicator. The analyst highlights that the asset’s 2 month Relative Strength Index (RSI) is exhibiting a pattern that has previously coincided with major turning points.

A critical zone in the long-term indicator

The key focus is on XRP’s 2 month RSI data. This indicator, designed to measure the strength of momentum behind an asset, helps investors better understand broader market cycles. Unlike shorter timeframes that can be distorted by intraday volatility, a multi-month RSI offers a clearer perspective on overall investor sentiment and the prevailing market trend.

EGRAG CRYPTO’s analysis suggests the current setup may be repeating this familiar cycle seen in the past. The cycle typically unfolds with a sharp acceleration in momentum, a subsequent pullback or loss of strength, a deeper consolidation or “reset,” and, finally, a new expansion phase. Present data indicates XRP could be nearing the final stage of this reset.

Within this perspective, the 50 RSI level emerges as a key threshold. In technical analysis, this mid-point is often considered the dividing line between strengthening momentum and waning conditions. As XRP’s 2 month RSI currently trades around this area, the next clear directional move is expected to be shaped here.

Holding above 50 and possible new targets

Sustaining RSI above the 50 level could signal stabilization in XRP’s long-term momentum. According to the analyst, a return by the RSI to the 52.85 – 55.45 range would further confirm that the asset’s strength is recovering after a prolonged period of consolidation.

EGRAG CRYPTO points to the 80 RSI region as the ultimate momentum target. In historical XRP cycles, moves towards this zone have typically aligned with the asset’s most significant rallies. Achieving this level would suggest an increase in market participation, accelerating momentum, and the likely beginning of a new expansion cycle.

However, there are ongoing downside risks. If XRP’s RSI were to fall significantly below 50, it would suggest the reset process is not yet complete. In that case, the 43.66 level is seen as a long-term support zone to watch.

Whale sales and regulatory expectations

Another development attracting attention in the market has been large transactions from key wallets. Analyst Ali Charts reported that major investors have sold over 30 million XRP in recent days. While such activity could create short-term selling pressure, it is noted that longer-term investors are focusing on the technical structure and potential upcoming catalysts.

Mini glossary: The CLARITY Act is recognized as a piece of proposed legislation in the United States aiming to establish a clearer regulatory framework for digital assets. Such proposals are widely viewed in the market as potential triggers that could pave the way for greater institutional participation.

At the same time, expectations for regulatory movement have been gaining momentum. Some in the industry believe that the proposed CLARITY Act could be a key catalyst for XRP. Should rules become clearer and institutional interest increase, mass adoption could accelerate, and if available supply tightens, a significant change in the supply-demand balance is possible.

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