XRP has rebounded after breaking past its support zone, and analyst Egrag Crypto believes this is a sign of correction rather than a short-term rebound.
The monthly relative strength index (RSI) for XRP showed early signs of turning into an uptrend after a long bearish phase. In June, the RSI fell to 40.59, entering the 40 region for the first time.
Egrag Crypto noted that this break below the zone was not an immediate bearish signal and could be a temporary dip to shake out weak participants. He interpreted this as a 'correction phase.'
In past cycles, the monthly RSI repeatedly followed a pattern of testing a support zone around 43.66 three times, forming a bottom and then returning to an upward move. This time, the drop was deeper, but the RSI has rebounded to 42.5 after touching the 40 region.
Egrag Crypto expected the area near the historical support zone to be the accumulation phase, but in practice, the RSI fell below it and a correction phase appeared first. He judged that a decisive breakout to the upside could follow.