XRP may be experiencing one of the deepest Relative Strength Index resets in its history as approximately $60 million in open interest vanished from the market within days, according to crypto market analyst EGRAG CRYPTO and data from CryptoQuant. Much of the decline came from Bybit, where overleveraged long positions faced liquidations. The analyst argues that despite the sharp momentum collapse, XRP's broader market structure remains intact, with the asset continuing to hold key long-term support levels at $1.16 per CoinCodex data. Historically, major XRP cycles have been characterized by violent RSI resets and investor exhaustion before transitioning into rallies, though the current momentum decline appears more extreme than previous instances.
EGRAG CRYPTO Identifies Historic RSI Reset in XRP Market Structure
EGRAG CRYPTO states that XRP's Relative Strength Index has plunged into unusually weak territory, marking what the analyst describes as one of the deepest momentum resets in the asset's history. The RSI, a widely used indicator measuring the strength and speed of price movements, has collapsed sharply. Unlike previous breakdowns that coincided with severe structural damage to price action, XRP continues to hold key long-term support levels according to the analyst.
The analysis focuses on a recurring historical "1-2-3" cycle pattern that XRP has followed during previous market phases. The structure typically begins with an initial breakout, followed by a deep correction that shakes out weak market participants, before culminating in a larger expansion phase. EGRAG suggests the current RSI collapse could represent the second stage of that sequence.
A key level being monitored is the RSI 44 mark, referred to by the analyst as the "green line." The analyst states that a decisive reclaim of that level could signal that bullish momentum is beginning to rebuild. EGRAG notes that some of the strongest rallies emerge when confidence is at its lowest.
CryptoQuant Data Shows $60M Open Interest Decline Since April
Data from CryptoQuant shows approximately $60 million in open interest disappeared from the market within days, marking one of the largest leverage flushes since April. Much of the decline reportedly came from Bybit, where overleveraged long positions were forced out as traders faced liquidations.
Despite the sharp reduction in speculative activity, XRP's price remained relatively resilient at $1.16 per CoinCodex data. From a market-structure perspective, leverage flushes often erase heightened speculation, normalize funding conditions, and reduce the risk of cascading liquidations according to the source. As weaker hands exit the market, stronger participants frequently begin accumulating positions at more favorable risk levels.
While bearish sentiment remains dominant and momentum indicators continue to look weak per the source, EGRAG CRYPTO states the bigger picture has not changed. The analyst notes that if historical patterns continue to play out, the current combination of a record-deep RSI reset and a major open-interest washout could create conditions for XRP's next major expansion phase.
FAQ
What did EGRAG CRYPTO say about XRP's RSI reset?
EGRAG CRYPTO stated that XRP may be undergoing one of the deepest Relative Strength Index resets in its history. The analyst noted that despite the sharp momentum collapse, XRP's broader market structure remains intact and the asset continues to hold key long-term support levels. The analyst identified RSI 44 as a key monitoring level, referring to it as the "green line," and stated that a decisive reclaim of that level could signal bullish momentum beginning to rebuild.
How much open interest disappeared from XRP markets according to CryptoQuant?
CryptoQuant data shows approximately $60 million in open interest vanished from the market within days, marking one of the largest leverage flushes since April. Much of the decline reportedly came from Bybit, where overleveraged long positions were forced out as traders faced liquidations. Despite this sharp reduction in speculative activity, XRP's price remained relatively resilient at $1.16 per CoinCodex data.
What is the historical cycle pattern EGRAG CRYPTO referenced for XRP?
EGRAG CRYPTO's analysis focuses on a recurring historical "1-2-3" cycle pattern that XRP has followed during previous market phases. The structure typically begins with an initial breakout, followed by a deep correction that shakes out weak market participants, before culminating in a larger expansion phase. The analyst suggests the current RSI collapse could represent the second stage of that sequence.
