XRP Surges 30% After Inclusion in US Crypto Reserve

XRP surged 30% yesterday after being included in the US crypto reserve, pushing its price above $2.90 for the first time in a month. This massive rally ignited strong bullish momentum, but the altcoin slumped 10% a day later.

XRP is experiencing a notable correction today, suggesting that profit-taking is underway. Whether the price can regain bullish momentum or continue its retracement will depend on key resistance and support levels, with traders closely watching $2.75 on the upside and $2.52 on the downside.

XRP RSI Is Neutral After Reaching Overbought Levels

XRP saw a significant surge in momentum following its inclusion in the US crypto reserve, with its price rallying 30% and the Relative Strength Index (RSI) peaking at 84.5.

The RSI, a widely used momentum oscillator that measures price movement speed and change, ranges from 0 to 100. Readings above 70 indicate an asset is overbought, while readings below 30 suggest oversold conditions. XRP’s RSI reached 84.5, signaling extreme bullish sentiment and often precedes a short-term correction.

Currently sitting at 63, XRP’s RSI has cooled off from overbought territory, reflecting the recent price retracement. While a reading above 60 still suggests bullish momentum, the decline could indicate waning buying pressure. If the RSI continues towards the neutral 50 zone, XRP might see further consolidation or a deeper pullback. However, renewed buying that pushes RSI above 70 could signal strength and higher price potential.

Ichimoku Cloud Shows Bullish Setup Still Present

The Ichimoku Cloud analysis indicates a sharp breakout above the cloud (Kumo) after XRP’s 30% surge following its inclusion in the US crypto reserve.

This confirmed a strong bullish move, with XRP moving above both the Tenkan-sen (blue line) and Kijun-sen (red line), signaling trend strength. The recent pullback is bringing the price closer to the Kijun-sen, implying the market is reassessing its recent gains while testing key short-term support. If the price holds above the Kijun-sen, consolidation could occur before another resistance attempt. Conversely, deeper corrections could indicate momentum loss.

XRP Price May Struggle to Reach $3

Following a spike to nearly $2.95, XRP’s price has initiated a correction as traders take profits. The technical outlook now hinges on whether the uptrend can regain strength. If buying pressure resumes, XRP might retest the $2.75 resistance. A breakout past this could lead to testing $2.96 and potentially drive toward $3.15, the first price above $3 since February 1. The SEC dropping the case against XRP could be a potential catalyst for this move.

If bearish pressure escalates, XRP might find support at $2.52. A breakdown below this could see $2.36 as the next focus, with further declines possibly driving the price toward $2.15 and $2.06. Increased skepticism over the asset’s inclusion in the US crypto reserve may amplify this bearish trend. According to Harrison Seletsky, director of business development at SPACE ID, the choice of assets included is surprising given their low total value locked (TVL) compared to industry mainstays. If bearish momentum intensifies, XRP might fall below the psychological $2 mark, with $1.77 identified as major support.