XRP Chart Shows 2022-Style Bottom Signal Amid Trend Weaknessv

1. A rare long-term indicator on XRP has returned to levels last seen at the 2022 bear market bottom.
2. Historical patterns show deep corrections often follow once key trend structures turn bearish.
3. Current weakness looks early, suggesting the market may still be moving through a broader reset phase.

XRP is once again flashing a signal that has barely appeared in its trading history. According to market analyst Steph, the Stochastic RSI on the 3-week timeframe has dropped to 0.00.

This level is extremely uncommon and has only shown up once before, during the depths of the 2022 bear market. On such a high timeframe, this indicator does not reach zero during normal pullbacks. It only happens when selling pressure has been fully drained from the market.

Source: X

This doesn’t mean that XRP will start moving up anytime soon. This means that the distribution force has now been reduced to a great extent. In the last cycle, this sign had marked the start of a very prolonged accumulation phase, not the start of a minor rally.

As Steph points out, this type of market signal is normally found around cycle bottoms rather than for trading purposes over the short term. The big danger may be limited at this point, although the price action may be slow or irregular.

EMA Ribbon Signals Have Led to Major Drawdowns

Although the long-term momentum appears to be exhausted, the medium-term momentum appears to be more cautious. On the 3-day chart, Steph identifies the EMA ribbon pattern that keeps repeating.

When this pattern turned bearish, and XRP traded below it in the past, there was a substantial fall that followed. These falls weren’t just temporary. They went on for several months and fell between 27% and 66%.

What’s worth noting in this pattern is its consistency. As of now, there are still no visible exceptions in this pattern. If the prices go below the upper Moving averages, XRP tends to go to a grinding downtrend rather than plummeting. There are weak reversals in this pattern, but they all fail as the decreasing averages limit the prices until the momentum runs out.

Source: X

XRP Rallies Sharply Above Averages

In the most recent cycle, XRP had another sharp rally and went high above its averages. The sharp increase is settling back a bit now. The price is clinging to the top edge of the EMA Ribbon and showing initial indications of flattening out. Up until now, the decline to around 6 to 7% is quite tame by correction standards.

However, history reveals that such weakness in the early stages around peak cycles can cause a larger pullback if the momentum just keeps weakening. The moving averages remain high, which means it hasn’t yet come back to its average.

Also Read: XRP Approaches Make-or-Break Trend Ribbon, Long-Term Targets $5–$8