Peter Smith
⬤ XRP just hit a momentum extreme that's never been seen before. The 2-week Relative Strength Index dropped to its most oversold level in the entire history of the asset. This comes after a brutal price drop that's pushed the indicator into completely uncharted territory. But here's the thing—this kind of extreme doesn't tell you when to buy. It just shows you that sellers are completely gassed out.
⬤ Looking back at previous cycles, when RSI gets this stretched, it means one thing: the selling has gone too far, too fast. But that doesn't mean prices automatically bounce back. These deep readings show exhaustion, not reversal signals. The market has moved hard in one direction and pushed the indicator into a zone it's rarely—or in this case, never—visited.
⬤ What happens next won't be decided by the RSI reading alone. Price structure is what matters now. The oversold condition tells us selling pressure is maxed out, but whether XRP reverses or continues lower depends entirely on how the market builds its next move.
⬤ The bottom line: momentum indicators show you pressure, not guarantees. When RSI hits record lows like this, the market enters a decision zone where how price forms—not just how low the indicator goes—determines what comes next.
Peter Smith
