Ripple (XRP) may soon explode: Key data points

With Gary Gensler's resignation, Ripple (XRP), which has been on the rise, can soon reach its peak?

Ripple (XRP), which has shown a 181.38% increase in the last 30 days, has exhibited a strong market momentum. XRP, which has entered a consolidation phase, currently has a Relative Strength Index (RSI) of 53.2, indicating further upward movement. If the bullish momentum regains strength, XRP can retest $1.63. However, if a downward trend occurs, the price may drop to $1.27 and then to $1.05.

The neutral outlook continues for Ripple (XRP)

Currently, the RSI value of XRP shows a neutral momentum with 53.2. RSI measures the speed and magnitude of price changes on a scale of 0 to 100. Values above 70 indicate overbought conditions, signaling a potential pullback, while values below 30 indicate oversold conditions and signal potential for recovery.

When XRP's RSI value reached $1.63 between November 21-23, it exceeded 70. The current value of 53.2 shows that the bull momentum has cooled off but there is no reversal signal yet. This neutral level indicates that XRP has consolidated after its recent rise. However, if the RSI drops further, the price may test support levels.

CMF indicator turned negative

Ripple's Chaikin Money Flow (CMF) indicator is currently at -0.05 level, down from 0.10 level a week ago when the price reached $1.63. CMF measures the inflow and outflow of capital into an asset. Positive values indicate buying pressure, while negative values indicate selling pressure.

CMF falling into the negative zone indicates that the selling pressure is beginning to exceed buying activities, but this pressure is not yet significant. The -0.05 level suggests a slight downward trend for XRP, but it indicates lower selling pressure compared to the -0.15 level on November 21. If CMF moves further downward, selling pressure may increase, signaling further decline in XRP price.

Can it return to its 2018 level?

XRP's Exponential Moving Averages (EMA) are still bullish, with short-term EMA lines trading above long-term EMAs. This indicates a continuing uptrend. However, the narrowing gap between the EMA lines suggests weakening bullish momentum and the possibility of a trend reversal.

If a downtrend begins, Ripple price can test the strong support at $1.27. If this support level is broken, the price may further decline to $1.05, representing a larger correction.

On the other hand, if buying pressure strengthens and a new uptrend forms, XRP price could retest $1.63. Breaking this level could take the price to $1.70 and Ripple could reach its highest value since 2018.

This article does not contain investment advice or recommendation. Every investment and trading movement involves risk, and readers should conduct their own research when making decisions.