XRP climbs above $1, but is a correction imminent this week?

Ripple’s recent price surge reflects strong bullish momentum, but a short-term consolidation correction appears imminent as market conditions indicate an overbought state.

By Shayan

The daily chart

Ripple’s extended consolidation near the $0.6 threshold ended with an explosive price increase of 158%, retrieving the 100- and 200-day moving averages.

This price action indicates a strong shift into a bull market. However, the rally hit a yearly high of $1.3, matching a major high since November 2021, a region rife with potential selling pressure.

The RSI indicator is showing overbought conditions, suggesting that Ripple could be ready for a corrective consolidation. This phase is expected within the $0.9-$1.3 range as the market digests the recent rally and prepares for the next move.

Source: TradingView The 4-hour chart

On the 4-hour chart, the impulsive recovery took Ripple to the $1.3 resistance zone, which led to a temporary rejection due to significant supply at this level. This rejection allows the market to cool and provides participants with an opportunity to profit.

The next likely scenario involves a pullback to the $0.9-$1.0 region, with a further correction targeting Fibonacci retracement levels of 0.5 ($0.88) and 0.618 ($0.78 ).

This phase is essential to maintain a healthy uptrend and avoid overextension, setting the stage for possible continuation of the uptrend.

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