Coinpaper
April 6, 2026 2:39 PM UTC

XRP Price Prediction: Historic RSI Reset Gains Steam as $60M in Open Interest Vanishes

XRP RSI Collapse Sparks Debate as Deepest Momentum Reset in History Aligns With $60M Open Interest Flush According to crypto market analyst EGRAG CRYPTO, XRP may be undergoing one of the deepest Relative Strength Index (RSI) resets in its history, a development that, while painful for traders in the short term, could lay the foundation for a significant move later in the cycle. The analyst argues that despite a sharp collapse in momentum, XRP's broader market structure remains intact. Historically, major XRP cycles have been characterized by violent RSI resets, investor exhaustion, and widespread pessimism before eventually transitioning into powerful rallies. This time, however, the momentum decline appears even more extreme. The RSI, a widely used indicator that measures the strength and speed of price movements, has plunged into unusually weak territory. Yet unlike previous breakdowns that coincided with severe structural damage to price action, XRP continues to hold key long-term support levels. For EGRAG, that distinction is critical. His analysis focuses on a recurring historical ”1-2-3” cycle pattern that XRP has followed during previous market phases. The structure typically begins with an initial breakout, followed by a deep correction that shakes out weak market participants, before culminating in a larger expansion phase. As a result, EGRAG suggests the current RSI collapse could represent the second stage of that sequence, a painful but necessary retest before momentum returns. A key level now being monitored is the RSI 44 mark, referred to by the analyst as the ”green line.” Therefore, a decisive reclaim of that level could signal that bullish momentum is beginning to rebuild. $60M Leverage Flush Resets XRP Market as a Potential Breakout Setup Emerges Looking at the other side of the coin, XRP’s open interest has been on a freefall. Data from CryptoQuant shows approximately $60 million in open interest has disappeared from the market within days, marking one of the largest leverage flushes since April. Well, much of the decline reportedly came from Bybit, where overleveraged long positions were forced out as traders faced liquidations. Despite the sharp reduction in speculative activity, XRP's price has remained relatively resilient. This has led some analysts to view the move as a healthy reset rather than a sign of deeper weakness with price presently hovering at the $1.16 level per CoinCodex data. From a market-structure perspective, leverage flushes often erase heightened speculation, normalize funding conditions, and reduce the risk of cascading liquidations. As weaker hands exit the market, stronger participants frequently begin accumulating positions at more favorable risk levels. While bearish sentiment remains dominant and momentum indicators continue to look weak, EGRAG CRYPTO believes the bigger picture has not changed. If historical patterns continue to play out, the current combination of a record-deep RSI reset and a major open-interest washout could eventually create the conditions for XRP's next major expansion phase. As the analyst notes, some of the strongest rallies emerge when confidence is at its lowest, and XRP may be approaching precisely that point.