Is Wave 3 of XRP coming? Egrag Crypto sees the RSI collapse as a restart of the momentum

Egrag Crypto, a cryptocurrency analyst, has expressed a keen analysis of XRP’s current trajectory, integrating Elliott Wave Theory and the Relative Strength Index (RSI) behavior. According to the expert, the current drop in the technical indicator does not necessarily indicate a failure but rather a purge of impatient participants that could pave the way for a stronger bullish move.

Egrag Crypto’s Analysis: Beyond the Corrective Wave

Egrag Crypto has identified patterns in XRP charts suggesting the end of a large correction (Wave 2), rather than a minor correction (Wave 4). This distinction is crucial in Elliott Wave analysis, as the subsequent Wave 3 typically represents the most dynamic and expansive phase of the cycle, characterized by impulsive movements that can double or triple previous gains.

The sharp decline in RSI, far from being solely negative, functions as what the analyst calls a “reset of momentum.” Technically, this means weak sellers have already exited their positions, removing disorganized selling pressure and creating conditions for a sustained rebound.

RSI at Historic Lows: Technical Interpretation

XRP’s Relative Strength Index has reached extremely low levels, a phenomenon experienced traders recognize as a potential turning point. When RSI plunges during a price drop, it indicates that the bearish momentum is weakening, even as prices continue to fall. This scenario often precedes significant rebounds.

Additional confirmation comes from the confluence of negative technical signals. XRP has broken below the critical support level at $2, trades below ancient trend lines, and faces widespread selling pressure. However, this convergence of bearish factors often marks the exact moment when the market hits bottom.

XRP Trades at $1.38 Amid Selling Pressure

As of this analysis (March 11, 2026), XRP is priced at $1.38, reflecting a 1.36% decrease in the last 24 hours. Its market capitalization reaches $84.37 billion, while the daily trading volume stands at $55.66 million. Although the numbers show a slowdown compared to previous periods, volatility remains a characteristic of the asset.

The price has retreated significantly from previous levels, touching points not seen in months. This downward move has cleared stop-loss orders and eliminated short-term speculators, leaving the field open for institutional accumulators and long-term holders.

Egrag Crypto’s Outlook: The Next Bull Cycle

According to Egrag Crypto’s interpretation, XRP’s current situation exhibits characteristics of a setup before an expansive move. The combination of Elliott Wave (Wave 2 completed), RSI at extremes, and concentrated selling pressure suggests the market is clearing weak positions and preparing for the impulsive phase.

While short-term challenges are present, the medium- and long-term outlook proposed by Egrag Crypto is constructive. If Wave 3 truly begins, traders could witness explosive movements typical of this phase of the Elliott cycle, where XRP potentially surpasses previous highs.

Analysts like Egrag Crypto’s opinions align with Ripple’s maintained perspective on XRP’s positioning for future bullish cycles, as recently highlighted by Canary Capital’s leadership. The market now awaits technical confirmations to validate this bullish scenario.