The price of XRP has soared to its highest levels in six years, hitting new milestones amid growing optimism around Ripple’s ecosystem. The company’s cryptocurrency has gained approximately 450% in 30 days, making it one of the best-performing on the market.
The big price jump comes as technical indicators suggest strong bullish momentum, although some metrics point to a possible consolidation ahead.
XRP’s RSI is still above 70
The Relative Strength Index (RSI) for XRP has maintained an overbought position above 70 since late November, reaching peaks near 90 before recently dipping to 71.5. This sustained period in overbought territory aligns with the significant price rally, demonstrating strong bullish momentum that has dominated the market for several weeks.
The RSI serves as a momentum indicator, measuring the speed and magnitude of price movements on a scale of 0 to 100. Readings above 70 generally indicate overbought conditions, while readings below 30 suggest oversold conditions.
XRP RSI. Source: TradingView
While the RSI remains in overbought territory at 71.5, its gradual decline from recent peaks near 90 could signal that buying pressure is starting to ease. However, this does not necessarily portend an immediate reversal of the prevailing uptrend, as assets can maintain overbought conditions during strong bull runs.
Therefore, a falling RSI may suggest a potential consolidation phase or a more sustainable pace of growth, rather than a definitive end to the current uptrend.
CMF has been positive for four days
XRP’s Chaikin Money Flow (CMF) has maintained a strong positive value of 0.34, having been in an uptrend since November 29.
The CMF is a volume-weighted average of accumulation/distribution over a specified period, typically 20 days, that helps measure buying and selling pressure. Values above zero indicate net buying pressure, while negative values suggest selling pressure.
XRP CMF. Fonte: TradingView
The high CMF of 0.34 indicates substantial buying pressure and institutional interest, supporting the current uptrend. This high positive value suggests that most of the trading volume is occurring at higher prices than in the previous period, reinforcing the bullish sentiment.
In this sense, we can expect the current uptrend to continue as long as the CMF remains significantly positive.
Prediction: Could XRP Rise to $3 in December?
XRP’s EMA lines display a strong bullish structure. With faster EMAs positioned above the slower ones, the price is trading comfortably above these levels. As the bull run continues, the altcoin faces a significant psychological and historical target at $3.
After this level, the all-time high of $3.18 presents the next major resistance. Reaching this level represents a potential 18.5% gain from XRP’s current price.
XRP Price Analysis. Source: TradingView
However, the uptrend brings downside risks that traders should consider. Key support levels have formed at $2.29 and $1.88, marking potential pullback targets if buyers lose momentum.
A correction to these levels would represent a significant drop of up to 32%, although such moves are common even within sustained uptrends.
The article XRP Forecast: What to Expect After 450% Monthly Jump appeared first on BeInCrypto Brazil.
