XRP cools off after 181.38% monthly gain, RSI at neutral 53.2
Chaikin Money Flow turns negative, suggesting waning buying pressure
EMA structure maintains bullish bias despite momentum slowdown
After an extraordinary monthly performance that saw XRP surge by 181.38%, the cryptocurrency has entered a critical consolidation phase that could determine its next significant move.
The recent rally, which pushed prices to $1.63, has now given way to a more measured market environment that demands careful technical analysis to understand potential future directions.
The Relative Strength Index (RSI) provides valuable insight into the current market dynamics. Sitting at 53.2, this momentum indicator has retreated from overbought levels above 70 seen between November 21-23, when XRP reached its local peak.
Source: TradingView XRP finds a temporary equilibrium
This neutral reading suggests the market has found a temporary equilibrium, allowing for price discovery in either direction. Think of the RSI as a pressure gauge – it’s now showing balanced market conditions rather than the extreme readings that often precede sharp reversals.
The Chaikin Money Flow (CMF) indicator offers a more concerning perspective, having declined from 0.10 to -0.05 since the recent price peak. This shift into negative territory reveals a subtle but important change in capital flows.
To understand its significance, imagine the CMF as a measure of the force behind price movements – while the current negative reading isn’t severe, it suggests that selling pressure is gradually building, though not yet at the intense levels seen during previous corrections (-0.15 on November 21).
Looking at the Exponential Moving Averages (EMAs), we find a nuanced picture that maintains an overall bullish bias while showing signs of weakening momentum.
The short-term EMAs remain above their longer-term counterparts, traditionally a bullish signal, but their converging pattern suggests the strong upward momentum is losing steam. This creates a critical technical junction where Ripple must either find renewed buying interest or risk a deeper correction.
Price projections based on these technical indicators suggest two primary scenarios. A bearish shift could see XRP test strong support at $1.27, with potential for further decline to $1.05 if this level fails.
