7 reasons XRP could end its downtrend against oil, how come?
Jakarta, Pintu News – A comparison of the price of cryptocurrency XRP against crude oil shows a technical pattern that could indicate the end of a downtrend that has lasted nearly three months.
This analysis is based on a comparison chart of XRP against West Texas Intermediate (WTI) Crude Oil shared by pseudonymous analyst @traderview2 on social media platforms, as reported by U.Today. This change in pattern provides new context to the dynamics of XRP price movements within the broader market framework.
1. Downtrend for Almost Three Months
According to the chart cited, XRP has experienced a clear downtrend against crude oil over the past almost three months, characterized by a diagonal trend line displaying strong resistance at the October high. This line shows a certain amount of price rejection every time XRP tries to go up. This chart forms the basis for the observation that the downward momentum over the period has not really ended.
The resistance area seen on the chart provides technical context that selling pressure is still recurring as prices try to rally. This shows that a long downtrend usually requires a convincing reversal pattern for a new trend to take place.
Also Read: 7 XRP vs BNB Facts: Tight Competition for Top-3 Market-Watched Crypto Positions
2. Technical Support & Resistance Levels
In the comparison chart, the major resistance zone is around 0.0440 while significant support is identified around 0.0270-0.0290, with the current price hovering around 0.0335. This support indicates an area where buyers have historically stepped in and resisted selling pressure.
This area is important because this kind of horizontal support can be the foundation for triggering a rebound movement if the price manages to hold it. As such, these supports and resistances become key levels in charting trend reversal opportunities.
3. Technical Pattern Suggests Selling Pressure May be Exhausted
Analysts looking at the chart are of the opinion that the intra-trend selling pressure could be starting to exhaust, a condition that needs to be confirmed by the price closing above the sloping resistance trend line. If the price manages to close above this line, it would indicate a change in technical sentiment.
Confirmation of a breakout from this downtrend could technically trigger a larger rally, although this has not happened at the time of this report. This context gives the nuance that a reversal is not a guarantee but a potential.
4. Comparison of “XRP vs Oil” as a Technology Indicator
The comparison to oil is used by some XRP enthusiasts as an analogy for the “digital fuel” that drives the global value system, similar to how oil drives industrialized economies. This analogy is often used as a narrative context for XRP’s utility in efficiently transferring digital value.
The term “digital oil” in this context is not a fundamental representation of crypto assets relative to actual oil, but rather their role in the ecosystem of payments and rapid value transfer. It is important to distinguish this from technical price analysis.
5. Ripple & Mechanism Escrow XRP
XRP differs from oil as a commodity in that most of the supply is initially controlled in escrow by the company Ripple. This mechanism is similar to controlled supply arrangements similar to organizations like OPEC in the context of oil, which disburses a certain amount each month.
The distribution of supply through Ripple escrow is a fundamental factor that is considered in the supply dynamics of the XRP crypto, but does not directly determine the short-term price increase pattern or technical comparison with oil prices.
6. RSI & XRP General Market Momentum
In addition to the downtrend pattern, XRP’s price dynamics are also influenced by common technical factors such as market momentum exhibited by the RSI indicator, moving averages, and other chart patterns. Prolonged selling pressure is often seen in downward momentum.
This change in technical momentum becomes an important signal in validating whether the downtrend is actually ending and moving into a broader consolidation or reversal phase.
7. Broader Crypto Market Context
XRP’s price movements are also influenced by general cryptocurrency market trends, including institutional demand, global risk sentiment, and inflation and macroeconomic policies affecting risk assets. These movements sometimes cause correlation or divergence between XRP and other assets such as Bitcoin.
These factors provide context that while the technical pattern against oil suggests a potential reversal, XRP’s price movements in the crypto market remain influenced by a wide range of variables.
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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.
FAQ
What does the XRP to oil ratio mean?
This comparison is a relative analysis technique to understand the price strength of XRP against other assets, not the fundamental relationship between cryptocurrencies and oil commodities.
What does the almost 3-month downtrend mean?
This refers to the diagonal trend line which shows that the price of XRP failed to break through resistance during that period in the XRP vs oil chart.
What are the key support levels observed?
The key support in the relative chart was around 0.0270-0.0290, where historical buyers appeared.
What are the conditions for a downtrend to be considered over?
A breakout and price close above the sloping resistance trendline is considered an early confirmation of the potential end of the downtrend.
Does the “digital oil” analogy mean that XRP is the same as oil?
No; the term is metaphorical to describe XRP’s utility as a digital value transfer “fuel”, not a direct economic relationship to crude oil.
Reference:
Alex Dovbnya/U.Today. XRP vs. Oil: Why This Slump Might Be Over. Accessed December 24, 2025.
