XRP has seen a significant rally, rising 51.33% in seven days and an impressive 109.09% month-to-date. This strong momentum has put Ripple’s cryptocurrency in a bullish phase, with key indicators such as the EMAs supporting its rise.
However, signs of weakening in the current trend, such as a declining RSI and negative CMF, suggest that caution may be warranted. Whether XRP continues to rise or enters a sharp correction will depend on how the market reacts to these changing dynamics.
XRP Below Overbought Zone
XRP's RSI has dropped to 60 after nearly reaching a top of 90 on Nov. 16 and remaining above 70 between Nov. 15 and 17.
This drop indicates that the altcoin has exited the overbought zone, where intense buying pressure previously drove its price higher. The drop suggests that the market is cooling off, with traders possibly taking profits after the strong rally.
The RSI measures the speed and magnitude of price changes, with values above 70 indicating overbought conditions and below 30 signaling oversold levels. At 60, XRP’s RSI reflects still-positive momentum but shows a more balanced sentiment compared to the past few days.
While the uptrend remains intact, the lower RSI could indicate a slower pace of gains, with the possibility of consolidation as the market stabilizes.
Therefore, if buying pressure returns, the asset could extend its upward movement, but a new drop in the RSI could signal a weakening of this momentum.
CMF now negative after remaining positive for 14 days
XRP’s Chaikin Money Flow (CMF) is currently at -0.12 after showing positive levels between November 5 and November 19. This is also its lowest level since October 31.
This shift into negative territory reflects an increase in selling pressure and a potential capital outflow from the asset. CMF’s transition to positive values earlier this month signals a weakening in bullish momentum as more market participants reduce exposure to the token.
CMF measures the volume and flow of money into or out of an asset, with positive values indicating capital inflow (up) and negative values showing capital outflow (down).
XRP’s current CMF suggests that bearish sentiment is starting to gain traction, potentially putting pressure on its price despite the recent uptrend. If the indicator remains negative or dips further, it could indicate sustained selling pressure, challenging its ability to continue its upward movement.
Price prediction
XRP’s EMAs currently display a bullish setup, with short-term lines positioned 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 suggests a potential slowdown in bullish momentum. This could signal that the uptrend is weakening, leaving the asset vulnerable to a shift in market sentiment.
If a bearish trend emerges, as indicated by the weakening RSI and negative CMF, XRP price could face significant pressure and potentially fall to its support at $0.49, representing a substantial 56% correction.
On the other hand, if the uptrend regains strength, XRP could rise to test the $1.27 level and potentially break out to $1.30, which would mark its highest price since May 2021.
