Ripple (XRP) Bullish Momentum Weakens After 333% Monthly Surge

XRP price skyrocketed 333% over the past month, making it the top gainer among leading coins. However, bearish indicators like a neutral RSI at 47.9 and negative Chaikin Money Flow suggest a potential downtrend.

Ripple’s 333% Rally Shows Signs of Weakening

Ripple (XRP) has been the standout performer among the top cryptocurrencies over the last 30 days, posting an impressive 333% increase. However, recent technical indicators hint that the bullish momentum may be fading, raising concerns among traders.

Currently trading at $2.25, XRP’s performance has been marked by a decline in its Relative Strength Index (RSI) and a negative shift in its Chaikin Money Flow (CMF).

XRP RSI: From Overbought to Neutral

XRP’s RSI has dropped to 47.9, down from over 70 on December 2 and 3. Previously, the RSI indicated overbought conditions, suggesting a potential correction. Its recent move into neutral territory implies waning momentum in XRP’s price surge.

The RSI is a critical tool for traders, ranging from 0 to 100. Values above 70 typically signal overbought conditions, while levels below 30 indicate oversold status. With the RSI now neutral, XRP might face challenges in regaining its previous uptrend.

Chaikin Money Flow Turns Negative

Adding to bearish signals, XRP’s CMF has dropped to -0.10, its lowest since November 21. The CMF tracks the flow of capital into and out of an asset, with negative values indicating selling pressure.

This reversal in CMF reflects an increase in distribution and could exert downward pressure on XRP’s price. A continued negative trend may make it harder for XRP to sustain its current price levels.

Price Predictions: Will XRP Dip Below $2?

Technical analysis shows XRP’s short-term EMA lines remain above the long-term EMAs, maintaining a bullish outlook. However, the price is now below the shortest EMA line, hinting at a potential downtrend.

• Key Support Level: $1.88
• Key Resistance Levels: $2.90, with potential for $3 if broken.

If XRP avoids a sustained downtrend, a rally toward $2.90 could be on the cards. However, should selling pressure persist, the token may test and fall below the $2 mark in December.

Outlook

XRP’s extraordinary gains make it a highlight of the recent bull run, but signs of fading momentum suggest cautious optimism moving forward. While a rebound could reignite its uptrend, traders should closely monitor technical indicators like RSI and CMF to navigate the potential volatility ahead.

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