XRP’s possible push toward the $4 mark is now facing a threat, with momentum indicators suggesting the asset may be primed for a correction.
Specifically, the Relative Strength Index (RSI), which measures the speed and change of price movements, is signaling overbought conditions.
Specifically, XRP’s 24-hour RSI stands at 83.08, while the 12-hour RSI is at 77.24. Both readings are well above the 70 threshold that typically indicates an asset is overbought and vulnerable to a pullback, according to data retrieved by Finbold from Coinglass on July 22.
Historically, elevated RSI levels have pointed to a potentially overheated market, often triggering selling pressure as traders take profits. If this pattern holds, XRP could face increased downside risk, with a drop below the $3 level becoming a realistic possibility, especially if overall market sentiment weakens in the coming sessions.
What next for XRP?
While XRP’s momentum indicators are flashing warning signals, its broader technical structure remains bullish.
In this case, analysis by trading expert Ali Martinez, shared in an X post on July 22, highlighted that XRP has staged a powerful breakout from a long-standing bullish flag pattern on the weekly chart, one that could ultimately drive the asset toward its $15 record high.
The outlook indicated that XRP was consolidating within a tightening flag structure for nearly ten months before decisively breaking out above the $2.70 resistance zone. The latest candle confirms bullish momentum, with XRP surging to around $3.50.
The breakout follows a period of low volatility and narrowing price action, conditions that often precede major moves in technical analysis.
With the flagpole suggesting a measured move that could propel prices significantly higher, analysts are now eyeing a potential long-term target near the $15 mark, based on the height of the flagpole projected from the breakout point.
XRP price analysis
At the time of writing, XRP was trading at $3.52, down approximately 0.8% over the past 24 hours. Over the last week, the asset has gained more than 20%.
Despite concerns about RSI levels, XRP continues to reflect bullish sentiment in both the short and long term, supported by its 50-day and 200-day simple moving averages, which stand at $2.43 and $1.82, respectively.
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