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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.
This article first appeared at CryptoPotato
