What’s next for XRP after the recent 17% crash?

The recent XRP rally has been nothing short of remarkable. The asset broke through major resistance levels and gained significant momentum.

However, with current indicators reflecting signs of overextension, a near-term correction or consolidation phase appears to be in the offing.

By Shayan

The weekly chart

XRP has staged an impressive breakout, rallying nearly 300% in the past few weeks. The price has broken through the $2 resistance and moved towards the psychological level of $3.

This bullish momentum has been fueled by substantial buying pressure, as indicated by the decisive move above the 100-week and 200-week moving averages.

In particular, the RSI (Relative Strength Index) has soared into overbought territory, reaching a level of 91, which is extremely rare and indicative of overheated conditions.

Historically, these extreme RSI levels often precede periods of consolidation or corrective pullbacks. From a structural perspective, the $1.80-$2 range now serves as critical support, and a pullback to these levels would represent a healthy correction for the continuation of the broader uptrend.

Source: TradingView The 4-hour chart

On the 4-hour chart, XRP maintained a strong bullish structure, consistently setting higher highs and lows within an ascending channel. The recent break above $2.50 highlights the dominance of buyers, although the price briefly pulled back after finding resistance near $3.

Interestingly, the RSI in this timeframe has shown a significant bearish divergence, suggesting waning momentum.

This, along with the increasingly crowded long positions in the futures market, increases the likelihood of near-term corrective action. A pullback to the $2.40-$2.50 region, aligning with the lower boundary of the ascending channel, could provide a new entry point for the bulls.

In summary, while Ripple’s mid-term outlook remains overwhelmingly bullish, the market is likely to experience a near-term consolidation or minor correction. This would be a welcome development, allowing for healthier and more sustainable growth in the coming weeks.

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