XRP is at a crossroads, as technical indicators hint that it may be headed for a reversal. On Wednesday, analyst CrediBULL Crypto highlighted in an X post that, among other assets, XRP has clean price action, with clear impulsive legs up and strong momentum. However, there is some indication that the immediate technicals are pointing towards a short-term correction.
According to the analyst, XRP has been one of the most straightforward coins to analyze in terms of impulsive and corrective patterns due to its clear price behaviour. Moreover, XRP’s strength and momentum are well-placed to outperform the broader market in the next few months. However, XRP has closed out a corrective structure after its latest bullish move. After this phase, CrediBULL believes that XRP may experience another price rally.
Bitcoin Drops 3% Amid $1.76B Liquidations, ETH and XRP FallRSI Indicates Potential Pullback
The RSI, a popular momentum indicator, indicates that XRP could be poised for a pullback. The RSI for XRP/USD touched 96.25 on December 2nd, an overbought level, meaning the coin had high buying pressure. According to the latest analysis, the RSI has crossed the 50.00 neutral level, and therefore, the bullish pressure seems to have subdued, and a bearish pressure may follow.
Also, the Awesome Oscillator (AO), another momentum indicator, signals weakening upward pressure. The red histogram bars mean upward pressure on XRP is declining. As the AO shifted downward, there have been increasing concerns that XRP could be under more selling pressure in the near future.
Head and Shoulders Pattern
On the 4-hour chart, the price of XRP has formed a head and shoulders pattern, the bearish reversal signal. The price has recently gone below the neckline at the $2.40 level, which shows that the buyers are losing steam. If this bearish trend continues, XRP might drop to $1.87. However, a move back to $2.90 cannot be ruled out if the bulls return to the picture. As of press time, XRP is trading at $2.39, up by 10.39% over the past day.
Looking at the technical analysis of XRP, the coin holds a high potential for long-term value growth, although short-term market volatility may cause a temporary reversal. Major levels like $2.40 and $1.87 will be important for the price action to determine whether XRP can keep going up or fall.
