Is XRP set to take off once the merger is over?

Ripple regained significant resistance levels, rising above the psychological threshold of $3.

While the price is showing strong upward momentum, mixed signals in market indicators indicate that a potential corrective phase may precede further upward movement.

XRP currency analysis

by Cheyenne

Daily chart

XRP has shown impressive bullish momentum in recent months, surpassing key resistance areas, including the previous major swing high of $2.8 and the psychological mark of $3. This breakout highlights the dominance of buyers in the market, indicating a strong bullish sentiment.

However, upon reaching the $3.4 price level, the bullish momentum faced selling pressure, resulting in a period of consolidation. The Relative Strength Index (RSI) is showing a bearish divergence combined with an overbought condition, which means that a potential corrective phase may emerge soon.

Despite this, price action remains within a rising wedge pattern, suggesting that continued bullish consolidation is possible in the medium term, provided buyers maintain control.

Four-hour chart

On the 4-hour chart, XRP’s break above $2.8 triggered a wave of short liquidation, pushing the price towards the $3.4 region. This area now acts as a major resistance zone marked by rising supply levels.

While there is likely to be a temporary rejection and consolidation at this resistance, Ripple’s strong bullish momentum suggests a potential breakout above the $3.4 mark in the broader horizons. Such a move would pave the way for a new all-time high.

In the short term, increased volatility should be expected, with possible corrections that will pull the price back towards the 0.5-0.618 Fibonacci retracement levels. This range could provide a strong support area, allowing Ripple to gather momentum for another rally.