Ripple’s cross-border token has sharply declined to a 14-month low during the broader crypto market downturn. However, despite this downturn, some indicators point to a potential short-term recovery.

Glimmer of Hope

In the last 24 hours, the digital asset market has faced severe struggles, with XRP dropping to a low of $1.11 as per CoinGecko data. At this point, its market cap shrank to approximately $70 billion. The sharp decline has seen XRP’s Relative Strength Index (RSI) reenter a territory not seen since the collapse of October 2025.

The RSI is a technical analysis tool that gauges recent price fluctuations, ranging from 0 to 100. A reading below 30 indicates an asset is oversold and could rebound soon. Conversely, a reading above 70 signifies bearish market conditions. XRP’s RSI fell to 13 but has bounced back to 40.

XRP RSI XRP RSI, Source: CryptoWaves

Now, the price has slightly recovered to nearly $1.40, prompting speculation on whether this indicates the start of a real recovery or just a ‘dead-cat bounce.’

Moreover, it’s noteworthy that recent net inflows into XRP exchange-traded funds have been positive, indicating sustained interest from institutional investors. In contrast, Bitcoin and Ethereum-focused investment vehicles have seen numerous daily losses.

Caution Ahead

However, some market participants remain skeptical about a lasting recovery. User FEXIR | CRYPTO on X projected that XRP could decline below $0.50, while another analyst, Charting Guy, warned that it might drop to $1.

The increasing number of XRP tokens on the Binance platform raises fears of a further decline. CryptoQuant data suggests that investors have been moving coins from self-custody wallets to exchanges as reserves at Binance have surged to nearly 2.73 billion XRP, often interpreted as a sign of an impending sell-off.

XRP Exchange Reserve Binance XRP Exchange Reserve Binance, Source: CryptoQuant

Stay tuned for further updates and analysis on this developing situation.