XRP's recent rally, nearly 50% in January, has raised concerns of a potential correction. As of January 18, XRP peaked at $3.39, its highest in nearly seven years, but technical indicators suggest a possible 25% decline is on the horizon. A bearish divergence between XRP's rising price and a declining Relative Strength Index (RSI) indicates weakening upward momentum, suggesting a reversal could occur soon. The current price remains significantly above its 50-day exponential moving average (EMA) of $2.28. Historically, price rallies often retreat to their EMA levels as traders lock in profits. Furthermore, XRP's RSI is approaching the overbought threshold but is trending down, intensifying the likelihood of a pullback. Should XRP hold above the upper trendline of its bull flag pattern, a successful retest could maintain bullish momentum toward the $4.42 upside target. Conversely, failure to hold could lead to declines, potentially towards $1.90 or lower. Analysts remain optimistic about XRP's long-term outlook, buoyed by the potential for significant assets in spot XRP exchange-traded funds (ETFs).

Source 🔗