XRP’s short-term surge above $3 is showing signs of potential exhaustion, with the Relative Strength Index (RSI) flashing overbought warnings.
On the monthly chart, the RSI reading of 71.47 has entered the overbought zone, a level often associated with upcoming corrections or consolidation. At the same time, the momentum indicator’s short-term metric is also flashing caution.
Specifically, on the four-hour chart, RSI sits at 74.26, firmly in overbought territory, while the daily RSI at 62.97 signals cooling momentum but still reflects elevated buying pressure.
Historically, whenever XRP’s RSI has crossed above 70 on higher timeframes, the token has faced notable pullbacks as profit-taking accelerates.
With the price already struggling to hold above $3, traders are now eyeing to sustain the psychological level as a crucial support. A decisive break below could open the door to deeper retracements toward the $2.70 zone.
Although momentum indicators are suggesting caution, XRP continues to experience bullish sentiment in line with the broader cryptocurrency market. Investors are betting on a September rate cut, which is fueling capital inflows into digital assets.
XRP’s next move
As for XRP’s next move, analyst Ali Martinez noted that after breaching resistance at $3.05, the token is now poised for higher levels. His outlook highlights that the breakout marks a decisive move above a descending trendline that had capped gains for weeks, signaling renewed strength in XRP’s structure.
Technical projections point toward $3.30 as the next major hurdle, followed by an extended rally toward $3.60, which aligns with the 0.382 Fibonacci retracement level.
On the other hand, failure to hold above $3.05, however, could see XRP revisit support near $2.90. Still, sentiment remains tilted in favor of the bulls as long as the breakout holds.
At press time, XRP was trading at $3.17, up more than 4% in the past 24 hours, while on the weekly timeframe, the asset has gained over 12%.
In the short term, XRP’s focus lies on sustaining the $3.10 support zone, as holding this level will almost guarantee a continued rally above $3, provided the broader market maintains its bullish run.
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