CandleFocus

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

Author: Content Editor
Summary: XRP has experienced a significant rally, reaching its highest levels in almost seven years. However, the market is showing signs of overheating, indicating a potential consolidation phase in the near term. The RSI suggests that the market is overbought, which often precedes a period of consolidation or corrective retracements. The key support level to watch is $2, which has now turned into crucial support after being reclaimed as resistance. A pullback towards this level would be healthy for the market before a potential continuation of the uptrend. On the 4-hour timeframe, the bullish structure is evident, but there is a bearish divergence on the RSI, indicating a likely correction in the near term. The large number of leveraged positions in the futures market increases the likelihood of a liquidation cascade if the price experiences a sharp decline. Therefore, while the mid-term outlook remains bullish, short-term consolidation or a pullback is expected, potentially leading to increased volatility.

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