#XRP Technical outlook: XRP could extend the price discovery phase

XRP price is currently trading at around $3.44, up slightly on the day at the time of writing. The token tagged a new record high of $3.66, underscoring increasing demand for both retail and institutional investors.

A Golden Cross pattern on the daily chart validated when the 50-day Exponential Moving Average (EMA) crossed above the 100-day EMA on July 11, cementing the bullish grip.

Additionally, a buy signal maintained by the Moving Average Convergence Divergence (MACD) indicator since June 28 has emboldened risk-on sentiment, calling on traders to increase their exposure.

A daily close above $3.50 could help ascertain the uptrend’s strength. If XRP breaks above the current all-time high of $3.66, a fresh price discovery phase could boost the token higher.

Despite the run-up to new record highs, volume in the spot market remains neutral, indicating that conditions are still favorable for XRP to extend its bullish leg to new levels, targeting $4.00 in the short term.

Meanwhile, the extremely overbought Relative Strength Index (RSI) at 86 signals the possibility of a trend correction, especially if profit-taking activities increase, overshadowing demand. The previous record high at $3.40 serves as tentative support, but if broken, traders will look for support at $3.00, which was tested in early March as resistance, and $2.80, which was tested as support on Tuesday.