XRP (Ripple) has hit its highest price levels in six years. This surge comes from growing optimism about the coin's ecosystem. Over the last 30 days, XRP has skyrocketed about 450%. It’s now one of the top-performing cryptocurrencies out there.
These impressive price movements are backed by technical indicators showing strong bullish momentum. However, some metrics suggest we might see a period of consolidation soon.
The Relative Strength Index (RSI) for XRP is currently above 70, indicating it’s in overbought territory. It peaked near 90 before recently dropping to 71.5. This extended stay in the overbought zone matches Ripple's significant price increase, showcasing the strong bullish momentum that has dominated the market for weeks.
The RSI measures how fast and how much prices are moving, on a scale from 0 to 100. Typically, readings above 70 mean the asset is overbought, while below 30 suggests it’s oversold.
Even though XRP's RSI is at 71.5, its gradual decline from the highs near 90 might mean buying pressure is easing. But don’t let that fool you; it doesn’t necessarily mean an immediate reversal is coming. Assets can stay overbought during strong bull runs.
Next, let’s look at the Chaikin Money Flow (CMF) for Ripple. It has held a positive value of 0.34 since November 29. This metric tracks the buying and selling pressure over a set period, usually 20 days. Values above zero indicate net buying pressure, while negative values show selling pressure.
XRP's CMF reading of 0.34 shows strong buying pressure and interest from institutional investors. This supports the ongoing uptrend. A high positive value means most trading volume is happening at prices above those of the previous period, reinforcing bullish sentiment. The continued positivity of the CMF backs the bullish trend.
Looking at XRP’s Exponential Moving Average (EMA) lines, they show a solid bullish structure. Faster EMAs sit above slower ones, and the price is comfortably above the shortest EMA. As the bull run continues, XRP faces a significant psychological target at $3.00.
Beyond that, the all-time high of $3.18 is the next major resistance point. That represents a potential gain of 18.5% from where XRP is now.
However, keep in mind that this upward trend comes with risks. Key support levels have formed at $2.29 and $1.88. These could be potential pullback targets if momentum starts to fade. A drop to these levels would mean a significant retracement of up to 32% for XRP, but such pullbacks are common even in strong bull markets.