XRP is showing signs of cooling off after the parabolic rise to $3.46. With RSI still fluctuating in the overbought zone, will the next correction occur — or is $4 the real target?
XRP Price Analysis: Strong momentum but key resistance levels remain
XRP (XRP) has had a spectacular growth week, skyrocketing from below $2.50 to a recent high of $3.47 — an increase of nearly 40% in just a few days. This breakout has pushed XRP above key resistance levels at $2.80 and $3.00, and is currently consolidating just below the nearest resistance level of $3.50.
On the 4H chart, XRP continues to grow well above both the 9 and 21 moving averages (3.46 and 3.26 respectively), but the latest candles indicate hesitation and tightening price action — a typical sign of consolidation or short-term pullback.
RSI suggests a potential recovery
The Relative Strength Index (RSI) is sending early warning signals. With RSI at 72.42, XRP is still in the overbought zone, which could lead to a temporary pullback before the next price increase. Historically, XRP tends to decline when the RSI exceeds 70 on the 4H timeframe, especially after strong price surges like this.
Traders should monitor the likelihood of price dropping to the MA 21 around $3.26 or even deeper into the support zone of $2.80–$3.00. These would be healthy corrections within the broader bullish trend.
Key support and resistance levels
The following are important levels to watch in the coming days:
Immediate resistance level: $3.50–$3.60 range
Major resistance level: $4.00, a psychological and technical level
Short-term support: $3.26 (EMA 21), followed by $2.80
Stronger support: $2.50 and $2.24
Any pullback to these lower zones could provide appealing buying opportunities, especially if buying volume returns quickly.
XRP Price Prediction: Is the $4 breakout still valid?
Despite short-term cooling signs, the macro structure remains very optimistic. XRP has escaped a prolonged accumulation phase, and the recent price surge has confirmed a trend change.
If buyers hold above the support zone of $2.80–$3.00, the likelihood of price rising to $4.00 is very high. A confirmed close above $3.60 would be the next catalyst for continued upward movement, aiming for the $4.00 mark as the next key milestone.
With increasing institutional interest in XRP, broader cryptocurrency adoption in the U.S., ongoing legal transparency, and a strong chart structure, the fundamentals support the potential breakout to $4.00 by the end of July or early August.
Final thoughts: Don’t chase — Buy on dips
While the FOMO sentiment is strong, professional traders know that real opportunities lie in waiting for optimal entry points. Keep an eye on XRP's movement around the $3.26 and $2.80 zones — these are areas to watch for a potential bounce before a price increase. Breaking above $4 could open the door for a new price exploration phase, but only if this consolidation is maintained and indicators like RSI are reset.