XRP may revisit $1 as negative momentum hits extreme levels
ITF Team2 min read
XRP fell to $1.16 on Nov 7, 2026, with RSI signaling oversold conditions and a potential drop to $1.04 amid US election fallout and high exchange inflows.
Key takeaways
- XRP traded at $1.16 on Nov 7, 2026, down 2.42%.
- The 4‑hour RSI has moved into extreme oversold territory, below 30.
- Exchange inflows of XRP hit their highest 30‑day average since Sep 26, 2026.
- Analysts project a short‑term floor near $1.04 if bearish pressure continues.
XRP slipped to $1.16 on Nov 7, 2026, after a sharp rejection at $1.32 and an extreme oversold reading on the 4‑hour RSI. The move follows a broader market sell‑off triggered by the U.S. mid‑term elections, where Democrats secured majorities in both chambers and signalled a tougher regulatory stance toward cryptocurrencies.
Election outcome fuels crypto sell‑off
The Democratic win was interpreted as hostile to digital assets, prompting investors to move millions of XRP tokens onto exchanges. This surge in on‑chain supply adds short‑term selling pressure, especially as the party recently rejected the Clarity Act, a key legislative effort that could have clarified crypto regulations in the United States.
Combined with the $6.3 billion Binance hack that surfaced earlier in the week, market sentiment turned sharply negative. While Ripple has secured a national bank charter and expanded its Ripple USD (RLUSD) payments network, those fundamentals are being ignored as traders focus on the immediate regulatory headwinds.
Technical picture: RSI, support and resistance
On the 4‑hour chart, XRP formed a bearish engulfing candle at $1.32, breaking the $1.20 support that had held for several sessions. The price then fell to $1.14, a level previously identified as a short‑term target. However, the RSI dropped below the 30 mark, a classic sign of extreme oversold momentum that historically precedes further declines.
Historical patterns show that when the 4‑hour RSI breaches the 30 threshold, the token often continues to lower lows for at least a week before finding a floor. In the two prior instances for XRP, the price fell to new troughs before rebounding. Applying that pattern, analysts expect a possible drop to $1.04, where a technical floor could emerge.
Read also: Nasdaq 100 rebounds as chip stocks recover in market overview
On‑chain data confirms rising selling pressure
Santiment data indicates that the 30‑day moving average of XRP exchange inflows has risen to its highest level since September 26, 2026 – the date when the current downtrend began. The spike suggests that bearish positions are being reinforced, and that the market may see heightened volatility over the next few days.
If inflow levels remain elevated, the added supply could push the price through the $1.14 target and toward the $1.04 floor. Traders should monitor exchange flow metrics alongside price action, as a sudden drop in inflows could signal a shift in market sentiment.
What to watch next
Key levels to watch are $1.20 as a potential bounce point, $1.14 as the next resistance, and $1.04 as the likely floor if the bearish wave persists. On the macro side, any regulatory announcements from the U.S. Treasury or the SEC regarding crypto classification could reignite volatility.
- Watch for any official statements on the Clarity Act or related crypto legislation.
- Track further exchange inflow data from Santiment for early warning of supply shocks.
- Monitor the 4‑hour RSI for a move back above 30, which could hint at a short‑term reversal.
Frequently asked questions
Why did XRP drop after the U.S. mid‑term elections?
The Democratic victory was seen as unfriendly to crypto, leading investors to move XRP to exchanges and increase selling pressure. Combined with the recent Binance hack, sentiment turned sharply negative, pushing the price down to $1.16 on Nov 7, 2026.
What does an RSI below 30 indicate for XRP?
An RSI under 30 on the 4‑hour chart signals extreme oversold conditions. Historically for XRP, such a reading has preceded further declines, suggesting the token could fall to around $1.04 before a possible technical bounce.
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This article is compiled from international market news for information only. It is not investment advice.