XRP has fallen sharply, pushing the token into oversold territory and triggering fear across the market. But some analysts, including Ripple commentator Bull Winkle, argue the sell-off may actually mark XRP’s most bullish setup in years.

He notes that while charts “look like they’re bleeding,” technical indicators are flashing oversold conditions — often the stage before sharp reversals. He compares the current drop to past resets seen in assets like Solana, where deep pessimism eventually fueled strong rebounds.

A major difference this time: XRP has a catalyst behind it. Legal clarity from the Ripple–SEC case has strengthened institutional confidence, opening the door for ETF inflows and renewed on-chain demand. Winkle frames it as a powerful combination: oversold conditions plus a fundamental catalyst.

Momentum signals support the idea. RSI and volume metrics show the market is stretched, and historically XRP has bounced aggressively from similar setups — especially when institutions accumulate quietly.

Still, oversold markets can stay weak, and traders are cautioned to manage risk and expect volatility as broader macro forces remain unstable.

Bottom line: XRP’s steep drop may be less a collapse and more the reset before a potential rally — the “slingshot moment” if catalysts and market appetite align.