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

XRP has experienced an explosive rally, breaking through significant resistance levels and reaching its highest levels in almost seven years. However, with the market showing signs of overheating, a consolidation phase is anticipated in the near term. XRP Analysis By Shayan The Weekly Chart 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. 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. 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. The 4-Hour Chart 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. 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. 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. The post Ripple Price Analysis: XRP Likely to Retrace Toward $2 Before Targeting New ATH appeared first on CryptoPotato .