Altcoin

These 3 Key RSI Levels Reveal What Next For XRP Price

Published

3 days ago

December 30, 2024

XRP Relative Strength Index (RSI) on the monthly time frame is providing crucial insights into potential price movements. Analysts have identified three pivotal RSI levels, 74, 70, and 65 as key thresholds for understanding the Ripple token trajectory in the near term.

XRP Price Prediction: Will RSI Levels at 74, 70, or 65 Define the Next Move?

According to a post on X by analyst Egrag Crypto, XRP price may experience significant momentum shifts based on its RSI levels. At press time, the monthly RSI indicator was at 78.29, signaling strong bullish momentum for XRP. A bounce from this level could drive the RSI toward 88 or even higher, indicating sustained upward momentum.

If the RSI dips to 70, it may reflect emerging bearish momentum. However, a bounce from this range is critical to preserving the ongoing bull run. The level of 70 is being closely monitored as a potential pivot point for XRP price trends.

Additionally, Egrag Crypto pointed out that the RSI level of 65 is a decisive point for Ripple’s token price. A drop to this zone signals entry into bearish territory. However, as long as the RSI does not close below 65, there remains the possibility of a recovery.

On the other hand, a close below 65 on the top technical indicator could signify the end of the current bullish cycle, triggering further downside. This level is regarded as the final line of defense for maintaining upward momentum in Ripple’s price trajectory.

Technical Analysis and Market Sentiment

In addition, analyst Ali Martinez has observed a tightening in the Bollinger Bands on XRP daily chart. This technical pattern often signals a period of low volatility, potentially leading to a significant price breakout or breakdown.

Analyst Egrag Crypto further shared in a different analysis emphasizing the importance of the $2.12 mark for XRP. The analyst identified it as a critical resistance level for the bulls to reclaim. Highlighting the Fibonacci channel at 0.236, the chart suggests a potential bullish trajectory if XRP achieves a daily closure above this level.

Additionally, the analyst marked $2.75 as the next significant target while acknowledging the $1.67 zone as an equilibrium point, providing strong support for XRP’s current consolidation phase.

Despite the bullish projection, XRP price has faced a challenging week, declining by 4.88% over the past seven days. Starting from a high of $2.23 earlier in the week, XRP struggled to maintain momentum, dropping to as low as $2.00 before recovering slightly to $2.12.

Moreover, in an earlier report, experts projected Ripple’s token to rally to $4, contingent on breaking resistance levels at $2.60, $2.65, and $2.75. However, they cautioned that failure to hold above the crucial $2 support could ignite bearish momentum, dragging XRP price down to $1.22.