XRP's recent market performance has left investors worried. A consecutive 7-day fall has caused the relative strength index (RSI) to drop to an oversold level of 17, while the price has deviated 4.2% from the 200-day moving average. Does this extreme market sentiment indicate an opportunity for a rebound? Let’s delve into the current situation.

From a value range perspective, the point of control (POC) at $3.468 is the watershed for mid-term bullish and bearish forces, with the high trading volume of 848 million coins around it indicating significant attention from market participants. The high volume nodes (HVN) in the $3.10-$3.13 and $3.46-$3.52 ranges may provide support during pullbacks, typically resulting in a 2-4% rebound.

It is worth noting that the low volume nodes (LVN) in the ranges of $2.95-2.97 and $3.63-3.67 may accelerate price movements upon a breakout. Currently, the price of XRP is $3.017, positioned in the lower half of the 70% value range ($2.759-3.553), indicating short-term oversold characteristics.

From a cyclical perspective, XRP has fallen 21% from its high of $3.84, and the open interest has decreased for 14 consecutive days, which may indicate that the secondary correction in the mid-term bull market is nearing its end. The buy wall of 2.9 million USDT around $3.0 provides some support for the market, but if it falls below $2.95, it may trigger a new round of panic selling.

For trading strategies, one might consider establishing a long position with a 30% allocation near the current $3.017, with a stop-loss set at $2.945 and target price levels of $3.13 or $3.46. More conservative investors may wait for the price to return above $3.05 and for the support at $2.95-2.97 to remain unbroken before entering.

However, investors should also be alert to potential risks. Macroeconomic negative news or a breakdown in Bitcoin prices could exacerbate the fall of XRP. Therefore, strictly controlling positions and not exceeding 2% of total funds is a wise choice.

For liquidity providers, it is recommended to focus on a market-making range of $2.95 to $3.55, with a grid step set at $0.03 to $0.04. This strategy covers 70% of the value area, with a buy wall below providing bottom protection, and high volume nodes above facilitating the execution of high-frequency trading.

Overall, XRP is currently near critical technical and psychological support levels. Although the oversold indicator suggests a possible rebound, investors need to remain vigilant and closely monitor the performance at the key support level of $2.95. In this uncertain market environment, risk management is more important than ever.