XRP Price Soars Past $130B Market Cap as Momentum Builds What’s Next?
XRP is back in the spotlight, surging nearly 6% over the past week and reclaiming a market capitalization above $130 billion, a level not seen since March 27. As bullish signals continue to stack up on technical charts, XRP is entering a critical phase that could dictate its next major move.
From a technical standpoint, indicators like the RSI, Ichimoku Cloud, and EMA golden crosses all point toward strong upward momentum. But will the rally continue or is a reversal on the horizon?
XRP Hits Overbought Territory for the First Time Since March
The Relative Strength Index (RSI) for XRP has climbed to 76.19, breaking above the overbought threshold of 70 for the first time since March 19. Just a day ago, XRP's RSI was at 51.4, showing a sharp surge in buying pressure within a very short time frame.
This sudden spike in RSI often signals that an asset is becoming overbought, potentially leading to price consolidation or even a short-term pullback. However, in strong bull markets, an overbought RSI can also be the beginning of a breakout, especially if backed by solid trading volume.
The RSI is a key momentum indicator that helps traders identify overbought (above 70) or oversold (below 30) market conditions. XRP’s current RSI of 76.19 suggests strong momentum but also warrants close observation for any signs of cooling off.
Some bullish analysts are even speculating that XRP’s market cap could soon challenge Ethereum, though that remains speculative and dependent on broader crypto market dynamics.
Ichimoku Cloud Flashes Bullish, but Thin Support Ahead
The Ichimoku Cloud, a reliable trend-following indicator, continues to show bullish signs for XRP. The token is trading well above the Kumo cloud, suggesting strong positive momentum. Additionally, the Tenkan-sen (conversion line) is above the Kijun-sen (base line), a classic bullish crossover.
The Chikou Span (lagging line) remains well above the price curve, confirming that past momentum is supporting current price action.
That said, the cloud ahead is notably thinner than in previous rallies, which means while momentum is still strong, the support below is weakening. If the price starts to dip, XRP could be more vulnerable to a quick pullback unless new buyers step in.
A bullish Ichimoku Cloud configuration, especially with price above the Kumo and crossover of key lines, typically indicates a continuation of the trend. But a narrow cloud suggests caution.
Golden Cross Patterns Signal Bullish Reversal or Continuation?
XRP has now formed multiple golden crosses on its exponential moving averages (EMAs), where shorter-term EMAs cross above longer-term ones. This is often considered a powerful signal that the market is shifting into a bullish phase.
These patterns, especially when they occur consecutively, are often seen as confirmation of a trend reversal or the beginning of a strong uptrend.
If bullish momentum holds, analysts are eyeing resistance at:
- $2.50 – the first key breakout target
- $2.64, $2.74, and $2.83 – additional resistance zones
- $2.99–$3.00 – a psychological level that hasn’t been breached in months
However, if momentum stalls, $2.18 becomes a critical support level. A breakdown below that could see XRP retrace toward $2.03, and in a more bearish scenario, prices could dip under $2.00, with major support at $1.90 and $1.61.
Golden crosses are often used by swing traders to spot early signs of bullish breakouts. XRP’s recent EMA behavior is giving strong signals, but price action must follow through.
Final Thoughts: Is XRP Gearing Up for a Major Move?
XRP’s recent price action and technical indicators suggest a bullish breakout may be underway. But with the RSI in overbought territory and support levels showing signs of thinning, traders should stay alert.
Whether XRP climbs past $3 or pulls back for a healthy correction depends largely on market sentiment, volume, and broader crypto trends. As always, risk management and close monitoring are key.
