XRP's price surge of 262% in 30 days is undoubtedly impressive, but it also raises concerns about a potential correction. According to analysts, XRP faces the risk of a 25% correction due to overbought conditions, which have historically preceded sharp price declines.¹
The Relative Strength Index (RSI) is currently in overbought territory, with a reading of 92, indicating that XRP may be due for a slowdown.² Additionally, Fibonacci retracement analysis suggests that XRP's recent breakout above the 2.618 Fibonacci extension (~$1.09) could pave the way for a pullback to $1.
However, it's essential to note that long-term technical indicators and fundamentals paint a bullish picture for XRP. The token has broken out of a symmetrical triangle pattern on the weekly chart, which could signal a potential run to its all-time high of $3.84.
*Key Levels to Watch:*
- _Resistance Levels:_ $1.1974, $1.3910, and $1.5941
- _Support Levels:_ $1, $0.85 (50-day EMA)
Ultimately, the direction of XRP's price will depend on various market factors, including the overall crypto market sentiment, regulatory developments, and the token's adoption rates.