Ripple XRP price has seen a massive surge, rising by 51.33% in the past seven days and 109.09% over the past month. This strong momentum has pushed XRP into a bullish phase, with key indicators such as the EMA lines supporting its upward trajectory.
However, signs of weakening momentum, such as a declining RSI and negative CMF, suggest that caution may be warranted. Whether XRP will continue to rise or face a sharp correction will depend on how the market reacts to these changing dynamics.
XRP RSI is below the overbought zone
XRP's RSI has dropped to 60 after almost hitting 90 on November 16 and remaining above 70 between November 15 and November 17.
This decline indicates that Ripple has exited the overbought zone, where intense buying pressure was previously pushing its price higher. The decline indicates that the market is calming down, with traders likely taking profits after a strong rally.
The RSI measures the speed and magnitude of price movements, with values above 70 indicating overbought conditions and below 30 indicating oversold levels. At 60, XRP’s RSI reflects positive momentum that is still in place but shows a more balanced sentiment compared to the previous rally.
While the uptrend remains intact, a low RSI could signal a slower pace of gains, with potential consolidation as the market stabilizes. If buying pressure returns, XRP price could extend its upward move, but a further drop in the RSI could signal weakening bullish momentum.
Ripple's CMF indicator turns negative after being positive for 14 days
Currently, XRP’s Chaikin Money Flow (CMF) indicator is at -0.12, having shown positive levels between November 5 and November 19. This is also its lowest level since October 31. This shift to negative territory reflects increased selling pressure and potential capital outflows from the asset.
The move from positive CMF values earlier this month indicates a weakening in bullish momentum as more market participants reduce their exposure to Ripple.
The CMF measures the volume and flow of money into or out of a particular asset, with positive values indicating upward capital flow and negative values indicating downward (bearish) capital flow.
XRP’s CMF at -0.12 indicates that bearish sentiment is starting to gain momentum, which could put pressure on its price despite the recent uptrend. If the CMF remains negative or drops further, it could indicate continued selling pressure, challenging Ripple’s ability to continue its upward move.
Ripple Price Prediction: Highest Price Since 2021?
XRP's EMA lines are currently showing a bullish setup, with the short-term lines placed above the long-term lines and the price trading above all of them.
However, the narrowing distance between the price and some of these lines indicates a possible slowdown in the upward momentum. This could indicate that the uptrend is weakening, leaving XRP price vulnerable to a shift in market sentiment.
If a downtrend emerges, as shown by the weak RSI and negative CMF, Ripple price could face significant pressure and may drop to its support at $0.49, which represents a significant 56% correction.
On the other hand, if the uptrend regains its strength, XRP could rise to test the $1.27 level and possibly break to $1.30, which would mark its highest price since May 2021.