XRP finds itself at a critical juncture following its impressive rally to multi-year highs. The cryptocurrency's surge past $3.40, driven largely by excitement surrounding the ProShares XRP Futures ETF approval, now faces growing skepticism among analysts. Market expert Michaël van Poppe suggests the rapid price appreciation may have overextended itself, warning traders to prepare for a potential correction as bullish momentum shows signs of exhaustion.
Key technical levels are coming into sharp focus as the market weighs XRP's next move. The $3.40 mark has emerged as crucial support - a level that could determine whether the rally has staying power or will succumb to profit-taking. Should this support fail, analysts anticipate a pullback toward the $2.70-$3.00 range, which could serve as a new accumulation zone. More conservative estimates suggest even deeper retracements to $1.81 or $1.57 might be possible if selling pressure intensifies significantly.
While the technical picture still shows strength with prices trading well above both the 50-day ($2.40) and 200-day ($1.82) moving averages, concerning signals are emerging. The 14-day RSI reading of 83.47 puts XRP deep into overbought territory, historically a precursor to pullbacks. Current price action at $3.57, with modest daily gains of 1.5% but impressive weekly growth of 20.8%, reflects a market that may be running out of steam after its explosive move.
Seasoned traders are approaching this situation with cautious optimism. The ETF approval provided the catalyst for XRP's breakout, but the question now is whether fundamental factors can sustain these levels. Market participants would be wise to monitor the $3.40 level closely, as a sustained break below could confirm the correction scenario. Those looking for potential entries might find better risk-reward opportunities if prices retreat to the identified support zones, though as always in volatile crypto markets, nothing is guaranteed.
