XRP Surges Above $1 but is a Correction Imminent This Week?

Ripple’s recent price surge reflects robust bullish momentum, but a short-term consolidation correction seems imminent as market conditions signal an overbought state.

By Shayan

The Daily Chart

Ripple’s extended consolidation near the $0.6 threshold ended with an explosive 158% price rally, reclaiming the 100 and 200-day moving averages.

This price action signals a strong shift toward a bullish market. However, the rally reached a yearly high of $1.3, coinciding with a significant swing high from November 2021, a region filled with potential selling pressure.

The RSI indicator shows overbought conditions, suggesting that Ripple might be poised for a corrective consolidation. This phase is expected within the $0.9-$1.3 range as the market digests the recent rally and prepares for the next move.

The 4-Hour Chart

On the 4-hour chart, the impulsive rally brought Ripple to the $1.3 resistance zone, leading to a temporary rejection due to significant supply at this level. This rejection allows the market to cool off and gives participants an opportunity to realize profits.

The next likely scenario involves a retracement toward the $0.9-$1.0 region, with further correction targeting the 0.5 ($0.88) and 0.618 ($0.78) Fibonacci retracement levels.

This phase is essential to maintain a healthy uptrend and avoid overextension, setting the stage for the potential continuation of the bullish trend.