Ripple (XRP) has managed to reach a 6-year high, increasing by over 330% in the last 30 days. However, RSI and CMF indicators indicate that the market is following a neutral trend and may enter a possible consolidation period. XRP could decline to $2.16 in the short term or rise towards $3.
Ripple (XRP), which has gained more than 330% in the last month, has shown a remarkable increase by surpassing Solana's market value and reached the highest levels in 6 years. However, technical indicators show that a balancing process has begun in the market after this strong momentum. The Chaikin Money Flow (CMF) indicator reveals that the balance of buying and selling in XRP is unstable. CMF, which remained positive between November 29 and December 5, dropped to -0.25 on December 6, indicating that selling pressure increased. Currently, CMF is at -0.01. This value indicates that selling pressure is weak but the buying momentum is not strong enough.
The Relative Strength Index (RSI) shows that XRP has declined from overbought territory to neutral levels. Between November 29 and December 3, the RSI entered the overbought territory, rising above 70. However, the RSI has declined from this level to 46, indicating that the market has lost its bullish momentum and is currently on a more balanced course. This suggests that the market is neither overbought nor oversold.
XRP’s Exponential Moving Averages (EMA) are generally indicating an uptrend, but the current price is trading below the short-term EMA lines. This could signal a possible trend reversal. If the bearish momentum picks up, XRP could seek support at $2.16. If this level is broken, the price could drop by 32% to $1.63.
On the other hand, if Ripple regains its upward momentum, it could retest $2.90 and even rise to $3, reaching levels not seen since 2018. However, this will depend on the overall market conditions and investor sentiment.