XRP News Today: XRP's RSI at 80 Again: Late Bull Phase or Imminent Bear Setup?

XRP's recent price action and technical indicators have sparked renewed optimism among investors, with the token's monthly Relative Strength Index (RSI) reaching the 80 zone for the second time in its history-this time suggesting a potential late-stage bull market rather than an imminent crash. Analyst Egrag Crypto, who has closely tracked XRP's momentum, noted that while the RSI's extreme reading mirrors the 2017 market peak, the indicator remains above the 50 threshold, leaving the door open for a final upward leg before a potential macro bear market confirmation. This nuanced interpretation contrasts with traditional bearish signals, emphasizing the need for caution but not despair among holders.

The RSI's current position aligns with broader on-chain and market dynamics. XRP's exchange balances have plummeted by 430 million tokens over eight days, signaling a liquidity squeeze that could amplify price volatility. Analysts like XrpArthur have drawn parallels to supply-and-demand principles, highlighting how reduced liquidity often acts as a catalyst when demand remains steady or rises. Meanwhile, the token's price rebounded from key support at $1.96, with traders now eyeing a breakout above $2.60 as a critical next step. This level, positioned near the midpoint of XRP's broader trading range, could serve as a momentum confirmation point.

The Grayscale XRP ETF (GXRP), set to launch on November 24, 2025, has further intensified market anticipation. The product, part of a growing ETF ecosystem for XRP, follows a $7.19 billion inflow in 24 hours that pushed the token's market capitalization to $122.49 billion. While institutional demand remains moderate, with the highest single-day inflow at $245 million into Canary's XRP fund, the ETF's potential to absorb up to 500 million XRP daily could create a supply squeeze, reducing circulating tokens on exchanges. This dynamic is already playing out, with exchange balances dropping from 2.63 billion to 2.20 billion tokens in a week as reported by CoinEdition.

Technical analysts also highlight XRP's monthly RSI as a pivotal metric. Unlike shorter-term readings, the monthly RSI evolves over years, with extreme levels historically preceding major market tops. In 2017, a similar RSI peak coincided with a bear market that only crystallized after the indicator fell below 50. Today, XRP's RSI remains above that threshold, suggesting a protracted distribution phase rather than a breakdown. Egrag Crypto assigns a 60% probability to continued strength, with the token potentially holding its late-bull phase until the RSI confirms a bearish cross below 50 as detailed in CoinEdition.

Meanwhile, the ETF landscape continues to shape XRP's trajectory. Four spot XRP ETFs-Canary, Bitwise, Franklin Templeton, and Grayscale have collectively absorbed 79 million XRP in their first trading day, with projections of 80 million XRP daily inflows if demand holds. While Tuesday's figures dipped to 16 million XRP, the cumulative trend underscores institutional interest. Analyst Chad Steingraber warned that sustained inflows could eventually drive billion-dollar trading volumes, further tightening supply and testing XRP's resilience.

For now, XRP remains in a delicate balance. Its price at $2.19 sits below key moving averages but above critical support levels, with RSI conditions hinting at a potential rebound rather than a collapse. As the market awaits the ETF's impact and the RSI's next move, investors are advised to monitor both technical signals and on-chain liquidity shifts. A breakdown below $1.90 could signal a bearish turn, but for now, the data supports a cautious bullish outlook.