While XRP is likely to show mixed results in the coming weeks, technical indicators and market sentiment suggest that the price is facing a potentially bullish wave. Despite recent profit-taking, XRP’s overall bullish sentiment continues to be supported by a notable trading volume increase and positive chart patterns.
According to COINOTAG’s analysis, XRP’s short-term trajectory will largely depend on external factors—especially regulatory news and market reactions. The crypto asset is entering a potential recovery phase following its recent price correction. Earlier this month, XRP surged by a significant 149%, largely driven by geopolitical developments, before hitting a three-year high of $1.26 before falling to $1.10.
Another notable element in XRP’s recent price action is the Relative Strength Index (RSI) rising above 70. This suggests that XRP has entered overbought territory and investors may be looking to book profits. Typically, a high RSI level leads to a price pullback, which coincides with a price drop.
However, XRP is currently moving through a symmetrical triangle formation that resembles a bull flag. This chart pattern has the potential to rally to levels around $1.57 if the price breaks above the upper trendline. Such a move would represent an increase of around 40% from current levels.
It should be noted that XRP’s price movement is not only dependent on technical factors, but also on external market dynamics. High volatility often occurs in response to regulatory developments and macroeconomic trends. Investors in the cryptocurrency world are closely following news that can cause price fluctuations. COINOTAG emphasizes that XRP’s reactions to political developments and connections to prominent figures in particular can affect investor confidence. This shows how market sentiment and investor sentiment can combine to affect prices.
XRP’s recent price pullback coincides with rumors that Ripple CEO Brad Garlinghouse is likely to meet with new political forces. Such engagements have raised concerns among some crypto investors about a more centralized approach to digital currencies. Leading industry experts Ryan Selkis and Pierre Rochard have criticized Ripple’s interactions with the government, warning that the decentralization ethos in the crypto space could be damaged. Such concerns could lead to further volatility in XRP’s market performance.
The losses in XRP’s market dominance have caused the token’s position in the overall crypto ecosystem to become uncertain as investors attempt to reduce their risk. This has led to a more cautious approach among investors and a reassessment of positions.
The future of XRP will be shaped by both technical signals and external developments. If the uptrend continues and external pressures decrease, XRP’s price action could recover in line with technical targets and make a significant jump. However, a break below support levels could bring the risk of a deeper pullback. In particular, the 50-4H exponential moving average at $0.52 will continue to be monitored as a significant support point. A drop below this level could lead to more selling pressure.