Selling Ripple (XRP) Now Makes No Sense, Says Analyst

XRP has struggled over the past month, sliding more than 13% and falling below a key support level. Despite the pullback, one prominent analyst argues that now isn’t the right time to bail on Ripple’s native token. With on-chain metrics flashing green and technical indicators hinting at a reversal, holders may want to hold tight rather than lock in losses.

Broken Support and Oversold Conditions

Over the last 30 days, XRP slid through the $0.52 floor, touching lows near $0.48. The breach alarmed many traders, as it marked the first close under that zone since early spring. However, RSI readings on the daily timeframe have dipped well into oversold territory, signaling that selling momentum may be exhausted. Historically, similar oversold swings have preceded bounces of 10% or more.

Fundamental Catalysts Remain Intact

Beyond the charts, the underlying fundamentals for Ripple haven’t changed. The company continues to expand its cross-border payments network, On-Demand Liquidity volumes are climbing, and partnership announcements keep coming. Meanwhile, the resolution of regulatory uncertainty in key markets has removed a major overhang. These factors could reignite buying interest and push XRP back above stiff resistance.

Key Levels to Watch

Analysts point to two levels that will decide XRP’s short-term fate. First, reclaiming $0.52–$0.54 is critical to prove that the support flip was a false breakdown. If buyers can muster strength here, an immediate retest of the 50-day moving average around $0.60 becomes likely. Conversely, a sustained drop below $0.48 could open the door to deeper declines toward $0.44.

What Traders Should Do

For those weighing their options, patience may be the best strategy. Aggressive traders could consider scaling into long positions once XRP reclaims the broken support zone, using tight stops just below the recent low. More conservative investors might wait for confirmation in the form of a daily close above the 50-day moving average before adding to their holdings.

Conclusion

Although a 13% monthly decline can be jarring, the combination of oversold technicals and solid fundamentals suggests that selling now could be premature. As Ripple’s ecosystem continues to flourish and on-chain activity picks up, XRP stands poised for a potential rebound. For investors who believe in the long-term case, weathering this dip may be rewarded when the broader market sentiment turns positive again.