Despite the slow start to the year that the digital asset sector has had, one token could be poised to make a turnaround. Specifically, Ripple (XRP) is eyeing potential 20% gains in a February rebound. Indeed, the asset is showing a signal that its downtrend could be coming to an end.
The asset has responded well since dropping to $0.50 over the last several days. Currently, it is trading at $0.52 and is up more than 3% over the last 24 hours according to CoinMarketCap. Subsequently, some market indicators are pointing to a rebound phase that could arrive at the start of next month.
Also Read: Ripple (XRP) Price Prediction: February 2024
Ripple (XRP) Could be Set to Rebound in the Second Month of 2024
Since the start of the new year, the digital asset market has failed to live up to expectations. Despite the landmark approval of Spot Bitcoin ETFs in the United States, the price of several tokens has not responded as expected. One of the chief culprits in that poor performance has been Ripple’s XRP.
Amid its ongoing downturn, the market has tried to narrow down when a reversal upward could be in the works. Although no sustained movement has occurred to this point, the coming month could be a different story. Indeed, Ripple (XRP) could be facing 20% gains when February approaches.
A month-long correction phase is nearing oversold levels. Therefore, a rebound could be in store. Specifically, IbraOM on TradingView noted that the relative strength index (RSI) of Ripple is reading below the 30 level. Subsequently, this data signals that a price bottom has been hit.
Also Read: Ripple (XRP): Could a Fall Below $0.50 Trigger a Turnaround?
This bottom creates the perfect time for seasoned investors to buy in on an asset like XRP. Therefore, an influx of funds triggers a rapid reversal of momentum. What makes that so likely for XRP is the positive potential that it still holds for 2024 and beyond. When that bottom is officially hit, a reversal appears to be inevitable.
On September 11th, 2023, the XRP RSI previously fell below the aforementioned 30 level. Then, it experienced a double-digit price rally that lasted until the start of October. Subsequently, that pattern could replay for the coming month.
In that case, a double-digit rally to start February is certainly not out of the question. Regardless, the coming month is a crucial point to observe for Ripple and the near-term performance of XRP amid its impending bottom,