Following Bitcoin’s record-breaking rally, Ripple (XRP) has experienced a notable uptrend in recent weeks, establishing a strong bullish market structure across both its USDT and BTC trading pairs.
However, the current price action indicates a potential overextension, suggesting a short-term correction or consolidation phase may occur before further upside continuation.
By ShayanMarkets
XRP has recently surpassed the significant $3.30 resistance level against USDT, extending a rally that began in early July. This bullish breakout was triggered by the price moving above both the 100-day and 200-day moving averages, which are now trending upward and forming a bullish crossover near the $2.40 area. These moving averages are likely to act as dynamic support in case of a deeper retracement.
Despite the bullish momentum, XRP is showing early signs of rejection at the $3.30 level. The Relative Strength Index (RSI) entered the overbought zone but has since declined below 70, coinciding with the current price pullback. The $3.00 level is now serving as short-term support.
If this level holds, it could provide a solid foundation for the next leg up. However, a break below $3.00 could trigger a more pronounced decline toward the $2.40 region, where the aforementioned moving averages converge.
The XRP/BTC chart reflects a similar trend, with Ripple’s token surging from early July and breaking above the 100-day and 200-day moving averages, both positioned near the 2,400 SAT level. This bullish move was met with resistance at 3,200 SAT, where the rally temporarily stalled.
Currently, the market is retesting a bullish fair value gap near the 2,700 SAT area. If this zone provides support, it could serve as a launchpad for another attempt at the 3,200 SAT resistance, with potential for a breakout. Conversely, failure to hold above 2,700 SAT could open the door to a deeper correction, with downside targets around 2,400 SAT or possibly the key 2,000 SAT support level.
Overall, while XRP’s trend remains bullish, short-term caution is warranted due to potential overbought conditions.
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