XRP Price Forecast: Extreme Oversold Levels Hint at $1.55 Retest

Published: February 06, 2026

Author: Alejandro Arrieche

Key Points

• XRP assets have decreased from $1.6 billion to $800 million in one month.
• The daily Relative Strength Index (RSI) for XRP reached its lowest level on record.
• XRP is approaching a critical retest of the $1.55 level, which could dictate its future price direction.

Market Overview

XRP has shown a notable recovery with a 20% gain in a single day, bouncing back from the $1.15 range. Despite this, the token's bearish target was reached, indicating significant volatility in the market.

Trading volumes surged to $15 billion, representing 16% of XRP's circulating market cap, highlighting increased market activity.

ETF Activity

Investors have continued to invest in XRP exchange-traded funds (ETFs), with $23 million inflows recorded in the first three days of the week. However, a significant withdrawal of $93 million occurred on January 29, leading to a 50% drop in total assets held in these ETFs, now at $832 million.

Technical Analysis

The daily chart indicates a strong single-day candle, suggesting a potential reversal. The RSI has hit an extreme level of 17, marking it as the most oversold condition for XRP on the daily chart, which is a significant indicator for traders.

Recent selling pressure is attributed to cascade liquidations rather than organic market dynamics, with liquidations reaching their second-highest level in 30 days on February 4. The current bounce may be due to profit-taking by bears or substantial buying from whales.

Critical Resistance Level

On the 4-hour chart, XRP is nearing a buy signal, contingent on a move above the 21-period exponential moving average (EMA). The $1.55 level is crucial; a breakout above this point could signify a reversal of the current downtrend.

Conclusion

The upcoming retest of the $1.55 level is pivotal for XRP's price trajectory. Traders should monitor this level closely as it could determine whether the bearish trend will continue or if a bullish reversal is on the horizon.