XRP Is on the Edge: Analyst Drops Shocking Price Target You Can't Ignore! Are You Ready to Miss Out?

XRP, the digital asset associated with Ripple, has experienced a notable downturn, dropping for four consecutive days from a high of $2.41 on January 6 to a low of $2.06 by January 8. This sharp decline follows a robust performance at the start of 2026, prompting many investors to take profits and reevaluate their positions in the rapidly evolving cryptocurrency market.

As of now, analysts are suggesting that XRP is entering oversold territory. Crypto analyst Steph is Crypto highlighted this trend, sharing a three-week chart of the XRP/USDT trading pair on Binance. The chart reveals a stochastic Relative Strength Index (RSI) below 25. Typically, an RSI reading below 30 indicates that an asset may be oversold, suggesting a potential rebound could be on the horizon.

🚨 $XRP IS OVERSOLD!!! pic.twitter.com/x2BxHmS9tC

January 10, 2026

In previous instances when XRP hit similar RSI lows in 2023 and 2024, the asset saw staggering price surges of 256% and 857% respectively. This historical data provides a compelling argument for potential recovery, with Steph predicting that XRP could reach $5 soon, stating, “XRP will hit $5 before you know it.”

Positive Signals Amidst the Decline

Additionally, Steph is Crypto pointed out that XRP has flashed a powerful signal on its weekly chart, as the weekly RSI has broken back above its moving average. This development is significant, as such breaks have historically indicated a shift in momentum toward buyers. Since 2024, every previous RSI break above the moving average has led to significant price gains in the weeks that followed. Observers are now keenly watching to see if this trend holds true for XRP once again.

Despite the recent price decline, XRP continues to trade within a broad range, fluctuating between $1.77 and $2.41 since mid-November 2025. The initial surge at the start of 2026 pushed XRP’s price above the 50-day moving average of $2, a crucial resistance level that had been capping its price action since October. The market is closely monitoring whether XRP can maintain this level as a support to continue its bullish momentum.

For investors, the next significant resistance level to watch is $2.56, which aligns with the 50-day moving average. A breakthrough at this point could pave the way for XRP to reach between $3 and $3.5.

Institutional interest in XRP remains strong, as evidenced by Evernorth's recent announcement of a partnership with Doppler Finance. The collaboration aims to explore liquidity and treasury use cases, further solidifying XRP’s presence in the institutional cryptocurrency landscape.

As the crypto market continues to evolve, the balance between profit-taking and potential recovery signals will play a critical role in shaping XRP's trajectory. Investors and analysts alike are advised to stay vigilant, as market conditions can change rapidly, influencing both short-term and long-term strategies.