Ripple Price Analysis: What’s Next for XRP Following the Recent 17% Crash?

1 month ago 26

The recent XRP rally has been nothing short of remarkable. The asset broke through major resistance levels and gained significant momentum.

However, with current indicators reflecting signs of overextension, a short-term correction or consolidation phase appears to be on the horizon.

XRP Price Analysis

By Shayan

The Weekly Chart

XRP has staged an impressive breakout, rallying nearly 300% in recent weeks. The price has exceeded the $2 resistance and moved toward the $3 psychological level.

This bullish momentum has been fueled by substantial buying pressure, as indicated by the decisive move above the 100—and 200-week moving averages.

Notably, the RSI (Relative Strength Index) has soared into overbought territory, reaching a level of 91, which is extremely rare and indicative of overheated conditions.

Historically, such extreme RSI levels often precede periods of consolidation or corrective retracements. From a structural perspective, the $1.80-$2 range now serves as critical support, and a pullback to these levels would represent a healthy correction for the continuation of the broader uptrend.

The 4-Hour Chart

On the 4-hour chart, XRP maintained a strong bullish structure, consistently setting higher highs and lows within an ascending channel. The recent breakout above $2.5 highlights buyers’ dominance, though the price briefly retreated after encountering resistance near $3.

Interestingly, the RSI in this timeframe has shown a significant bearish divergence, suggesting waning momentum.

This, coupled with the increasingly crowded long positions in the futures market, raises the likelihood of short-term corrective action. A pullback toward the $2.40-$2.50 region, aligning with the lower boundary of the ascending channel, could provide a fresh entry point for bulls.

In summary, while Ripple’s mid-term outlook remains overwhelmingly bullish, the market will likely experience short-term consolidation or a minor correction. This would be a welcome development, allowing for healthier and more sustainable growth in the weeks ahead.