bullish

<p>XRP has experienced an explosive rally, breaking through significant resistance levels and reaching its highest levels in almost seven years.</p>
<p>However, with the market showing signs of overheating, a consolidation phase is anticipated in the near term.</p>
<h2 id="xrp-analysis">XRP Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<h3 id="the-weekly-chart">The Weekly Chart</h3>
<p>Ripple has shown an impressive surge, climbing over 100% since last week, pushing past the $2 resistance level, and hitting $2.5 for the first time since January 2018. This strong upward movement signals a dominant buying presence in the market.</p>
<p>The price action reflects extreme optimism, but the RSI has surged into overbought territory, suggesting the market is overheated. Such conditions often precede a period of consolidation or corrective retracements, as buyers may need time to digest the gains before pushing the price higher again.</p>
<p>In the mid-term, the key support level to watch is the $2 threshold, which has now turned into crucial support after being reclaimed as resistance during the recent surge. A pullback toward this level would be healthy for the market, offering a chance for buyers to regroup before a potential continuation of the uptrend.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/XRP-W-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>On the 4-hour timeframe, the bullish structure is clear, with higher highs and higher lows. Ripple has successfully reclaimed several key resistance levels, including its previous ATH of $2, before surging to the new $2.5 mark.</p>
<p>The asset recently broke above the upper trendline of an ascending channel, further emphasizing buyers’ dominance. However, the RSI on this shorter timeframe shows a notable bearish divergence, signaling that a correction is likely in the near term.</p>
<p>With its large number of leveraged positions, the overheated futures market increases the likelihood of a liquidation cascade if the price experiences a sharp decline. This suggests that while the mid-term outlook remains bullish, short-term consolidation or a pullback is expected, potentially leading to heightened volatility.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-373059" src="https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/12/XRP-4H-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/ripple-price-analysis-xrp-likely-to-retrace-toward-2-before-targeting-new-ath/" rel="noopener noreferrer nofollow">Ripple Price Analysis: XRP Likely to Retrace Toward $2 Before Targeting New ATH</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Ripple Price Analysis: XRP Likely to Retrace Toward $2 Before Targeting New ATH

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