The crypto FGI has again dropped to extreme fear, but historical data suggests XRP might leverage this positioning for a 500% pump.
Market analyst Steph (@Steph_iscrypto) highlighted the situation in a recent post on X. Notably, his commentary came on the back of the latest XRP price crash, triggered by a broader crypto market slump amid macroeconomic concerns in the United States.
For context, despite a mild 1.88% increase yesterday, XRP is also suffering losses over the past few days following a massive 11.6% crash on Monday, Feb. 24.
Crypto FGI Hits 5-Month Low of 25
Expectedly, amid the market turbulence, the crypto Fear and Greed Index (GPI), a tool that measures crypto investor sentiment, dropped to 25 yesterday, Feb. 25, for the first time in five months. For context, the index reads from 0 to 100, with lower values indicating bearish sentiments.
Steph called attention to the crash yesterday, which brought the index to the “Extreme Fear” level for the first time this year. However, the market analyst highlighted an interesting historical fact associated with XRP and the crypto FGI.
Specifically, the last time the FGI collapsed to 25, signaling Extreme Fear, was in September 2024. At the time, XRP was trading for $0.5249. However, after this drop, prices started recovering and sentiment picked up. XRP witnessed a slight rebound but remained at the mercy of the bears until the U.S. election in November 2024.
Following Donald Trump’s victory, XRP skyrocketed, soaring to reclaim the $1, $2 and $3 psychological levels within four months. At its seven-year peak of $3.4 in January 2025, XRP recorded an impressive 547% increase from its Sept. 9, 2024 price after the FGI hit 25 and recovered.
With similar trends repeating, Steph’s disclosure implies that when prices rebound, XRP could set itself up for another massive upsurge. However, the asset is currently at a better position amid the recent FGI drop to 25, currently trading for $2.29, as opposed to the $0.52 price last September.
XRP RSI and CCI at More Bullish Positions
In addition, a closer look at the daily chart shows that the Relative Strength Index (RSI) and the Commodity Channel Index (CCI), both momentum indicators, are in more bullish positions currently than they were last September. This bolsters the chances of an XRP uptrend.
Particularly, when the FGI hit 25 in September 2024, as XRP traded for $0.52, the RSI stood at 43.52, while the CCI had a value of -91.07. Although these positions did not particularly signal that XRP was extremely oversold, they indicated that the asset still had more room for growth.
Now, with XRP changing hands at $2.29 and the FGI reading 25, the RSI stands at 37.93, with the CCI hovering around -144.81. Interestingly, the CCI below -100 confirms that XRP is oversold and set for a rebound, while the RSI signals more room for further expansion. These indicators are in more bullish positions.
Should XRP replicate the 500% increase, a rally from the current position would push its price to a new all-time high of $13.74. Notably, Chartered Market Technician Tony Severino suggested last month that XRP was on the verge of claiming a $13 price, citing a bull flag structure.
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