The crypto market has suffered a massive downturn, wiping out $160 billion in total market capitalization over the past 24 hours. This sharp decline has caused PI to shed 24% of its value.

However, technical indicators suggest that a rebound could be on the horizon for the popular altcoin. 

PI’s Market Decline Shows Signs of Seller Fatigue 

PI’s hourly chart reveals that its Relative Strength Index (RSI) is near the oversold territory, signaling that selling pressure may be reaching exhaustion. As of this writing, this momentum indicator is downward at 31.36.

An asset’s RSI measures its overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a retracement. On the other hand, values under 30 suggest that the asset is oversold and may witness a rebound.

At 31.36, PI’s RSI signals that the token is nearing oversold territory. This suggests weakening selling pressure and the potential for a price rebound if buyers step in.

In addition, PI’s price just broke below the lower line of its Bollinger Bands indicator, confirming sellers’ exhaustion. This indicator is a volatility marker consisting of a middle-moving average line and two outer bands that expand and contract based on price fluctuations. 

When an asset’s price breaks below the lower band, it signals that it is oversold and trading at an extreme deviation from its average price. If buying pressure increases, this can indicate a possible rebound or trend reversal.

PI Teeters at Crucial Level—Breakout or Breakdown Ahead?

A resurgence in PI demand could trigger a rebound toward its all-time high of $3, which was reached on Thursday. This represents a 44% uptick from its current value of $2.08. However, for this to happen, PI must first break above the resistance formed at $2.56.

Conversely, if the downtrend continues due to a lack of new demand for PI, its price could plummet toward $1.62. 

XRP has experienced a significant price pullback recently, largely driven by the broader bearish market trend affecting major cryptocurrencies. 

Despite this, whales have been accumulating large amounts of XRP, which may signal the potential for a price reversal. Historical trends suggest that a rally could be on the horizon.

XRP Whales See A Bullish Future

Whale addresses holding between 10 million and 100 million XRP have added over 300 million XRP, totaling $609 million in the last few days. The accumulation occurred after these whales previously sold off their holdings when prices were higher, locking in profits.

Now, with the market in a slump, they are buying back in, signaling a high level of confidence in XRP’s future price movements.

The actions of these whales suggest a belief in an eventual price recovery. Their purchasing behavior is typically a strong indicator of market sentiment, particularly when they accumulate during dips.

The relative strength index (RSI) for XRP is currently in the oversold zone, a critical technical signal. This is the first time in seven months that the RSI has dropped to such low levels. Historically, such drops have been a reversal trigger for XRP, with the last similar occurrence leading to a 47% rally.

The current RSI value suggests that XRP may be oversold and due for a correction, which could result in a price rebound. Given that this level has often preceded significant price surges in the past, the likelihood of a similar outcome increases. If the trend continues, XRP could reach up to $2.98.

XRP Price Has A New Target

XRP is trading at $2.03, down 24% over the past week. The Ripple token is currently holding above the $1.94 support level. XRP is attempting to breach the resistance at $2.33 with the aim of flipping this level into support. If successful, the move would mark the beginning of a potential rally.

With the technical indicators suggesting a bullish reversal, XRP could target $2.33. Further movement above this level would bring it closer to $2.70. Surpassing this resistance would drive the price toward $2.95, which aligns with the targets suggested by the RSI data and recent whale activity.

However, if XRP fails to breach $2.33 and remains in consolidation below this level, the price could stagnate between $1.94 and $2.33. This would invalidate the bullish outlook and delay any potential recovery.

SEC Commissioner Caroline Crenshaw broke precedent today with a scathing letter directed at the Commission’s pro-crypto turn. She accused it of willfully disregarding the law to promote the crypto industry’s interests.

The trigger for this outburst was the SEC’s decision to drop its lawsuit against Coinbase. Crenshaw’s term won’t end until June, and she may become a very vocal critic if she can keep her seat.

Crenshaw Blasts SEC Over Coinbase

The SEC is one of the US’ top financial regulators, and trouble is brewing behind the scenes. Last December, the industry lobbied hard against Caroline Crenshaw, an anti-crypto Commissioner whose term was ending.

Crenshaw’s re-nomination effort failed due to this pressure, but she’s still on the SEC until June. Apparently, she has little to lose right now.

In a scathing letter posted to the SEC’s own website, Crenshaw criticized the Commission’s entire pro-crypto direction. The reason? The SEC dropped its lawsuit against Coinbase after signaling it would do so, and this was apparently a bridge too far.

Crenshaw claimed the move openly ignored 80 years of legal precedent to give the industry preferential treatment:

“Today’s action undermines the credibility of our Division of Enforcement. It creates the specter that the agency will deploy its enforcement resources in conjunction with election cycles or in favor of those with means. This invites criticism that our agency is politicized and sows distrust in government. Our agency’s job is to do what is right. This is not it,” she stated.

This criticism is particularly noteworthy because Crenshaw is still a Commissioner, and this is live on the SEC’s website. Compare it, for example, to the farewell letter that pro-crypto Commissioners wrote for ex-Chair Gary Gensler.

They praised his “extensive service,” “zealous advocacy,” and his personal friendship. In other words, SEC internal disputes are never this public.

Clearly, Crenshaw thinks that the SEC’s pro-crypto shift is a grave mistake. Moreover, she referenced the industry’s stated desire for “regulatory clarity,” and questioned if it was sincere.

This may be a reference to Hester Peirce’s Crypto Task Force, which is about to host “Spring Sprint Towards Crypto Clarity” discussions with industry representatives.

In fairness, Crenshaw may have good reason to worry about the SEC’s future. The Commission has been ending a spree of crypto enforcement actions, and some of Gensler’s old targets have been grateful for the policy shift.

Others, however, have been openly vengeful towards the Commission and want to act decisively to prevent future enforcement.

Ultimately, the Coinbase lawsuit is just the beginning. Several cases like the SEC v Ripple are still active, and Crenshaw’s term won’t expire until after key deadlines.