XRP (Ripple) price has skyrocketed to its highest level in six years, reaching new milestones amid rising optimism surrounding the coin’s ecosystem. The coin is up around 450% in the past 30 days, becoming one of the best performing cryptocurrencies on the market.
The notable price move comes as technical indicators hint at strong bullish momentum, although some indicators suggest a correction may be approaching.
XRP’s RSI remains above 70
The Relative Strength Index (RSI) for XRP has maintained an overbought position above 70 since late November, peaking near 90 before falling to 71.5. This extended period in the overbought zone is consistent with Ripple’s significant price increase, indicating strong bullish momentum that has dominated the market for weeks.
RSI acts as a momentum indicator, measuring the speed and magnitude of price movements on a scale of 0 to 100. Scores above 70 typically indicate overbought conditions, and below 30, oversold conditions. level.
While the XRP RSI remains overbought at 71.5, the gradual decline from its recent peak could signal that buying pressure is starting to ease. However, this does not necessarily predict an immediate reversal of the uptrend, as the asset can maintain overbought conditions during strong bullish periods.
This drop in RSI could hint at a potential period of correction or more sustained growth rather than a definitive end to the current uptrend.
Ripple’s CMF Index has been positive for four days
The Chaikin Money Flow (CMF) index for Ripple price has maintained a strongly positive value at 0.34, continuing its upward momentum since November 29.
CMF is a volume-weighted average of accumulation/distribution over a specified period, usually 20 days, that helps measure buying and selling pressure. A value above zero indicates net buying pressure, while a negative value indicates selling pressure.
XRP’s CMF index is high at 0.34 demonstrating significant buying pressure and institutional interest, supporting the current uptrend. This highly positive value suggests that most trading volume occurred at higher prices compared to the previous period, reinforcing bullish sentiment.
While the CMF remains significantly positive, it still favors the continuation of the uptrend.
XRP Price Prediction: Could it reach $3 by December?
XRP’s EMAs exhibit a strongly bullish structure, with the faster EMAs above the slower EMAs and the price trading comfortably above the shortest EMA. As the rally continues, XRP faces a significant historical and psychological milestone at $3.
Beyond that, the all-time high of $3.18 is the next major resistance, representing an 18.5% upside potential from the current XRP price.
However, the uptrend also brings downside risks that traders should consider. Critical support levels have formed at $2.29 and $1.88, marking potential correction targets if momentum fades.
A correction to these levels would represent a significant recovery of up to 32% for the XRP price, although such corrections are common even in sustained uptrends.