XRP to Surpass Its 2021 Level As RSI is Below The Overbought Zone! Is $1.30 next?
Ripple (XRP) has been on a tear, gaining 51% in the last week and a staggering 109% over the past month. This bullish momentum has pushed XRP toward levels not seen in years, fueled by strong technical signals and widespread market optimism.
However, momentum indicators suggest a cooling-off phase may be on the horizon. Here's what traders need to know about XRP's path forward:
XRP’s Relative Strength Index (RSI) has dropped to 60, down from nearly 90 on November 16, indicating it has exited the overbought zone. This pullback suggests profit-taking by traders after the recent rally.
Why It Matters: RSI measures price momentum; a drop from overbought levels signals a more balanced market, though bullish sentiment remains intact.
If RSI stabilizes or bounces higher, XRP could continue climbing. A further drop might signal a shift toward consolidation or correction.
The , which tracks capital inflows and outflows, has turned negative for the first time in two weeks, hitting -0.12. This shift reflects growing selling pressure and reduced capital inflows.
XRP remains above its Exponential Moving Averages (EMA), a key bullish signal. However, the narrowing gap between price and EMA lines hints at slowing momentum.
A renewed price surge would confirm continued bullishness, while a dip below key EMA levels could point to a significant correction.
ATM, XRP faces two potential scenarios to me:
A Bullish Continuation: If RSI and CMF improve, XRP could push past $1.27 and break through to $1.30, its highest level since May 2021.
OR
A Bearish Correction: If momentum continues to fade, XRP may retreat to $0.49 support, a potential 56% correction from current levels.
While the bullish trend remains, weakening indicators highlight the need for caution. Whether Ripple reaches its highest price since 2021 or faces a sharp pullback depends on how the market reacts to these evolving signals.
