Where is XRP headed after a massive crash and quick rebound?

Ripple recently surpassed its previous high of $2, maintaining strong bullish momentum and approaching its all-time high of $3.4.

This price zone is critical, as a break above it could trigger a substantial rally to unprecedented levels.

XRP analysis

By Shayan

The weekly chart

After an extended build-up phase within the $0.3 to $0.9 range, Ripple witnessed intensified buying pressure, leading to a powerful rally. The price soared roughly 490% from the lows, reclaiming several key resistance levels, including the pivotal $2 mark. However, XRP now faces a significant supply zone around $3, where selling pressure could hinder further advances.

Also, the RSI indicates overbought conditions, suggesting a likely consolidation phase within the $2-$3.4 range. This pause would allow the market to absorb the selling pressure before buyers can make a decisive attempt to break this psychological resistance and establish a new ATH.

The 4 hour chart

In the 4-hour period, XRP encountered strong resistance in the $3 region, prompting notable selling activity and price rejection. This pullback indicates a temporary loss of bullish momentum, possibly reflecting profit taking and distribution among market participants.

After the rejection, Ripple entered a consolidation phase, breaking below its multi-week uptrend line. This development suggests increasing dominance by sellers and a likely near-term corrective phase. Volatility and market swings could intensify, with the $2 level acting as a critical support zone.

After this period of consolidation, Ripple is expected to regain bullish traction, with another attempt to break the $3 resistance likely on the horizon.

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