XRP has climbed back above $3, energizing traders who see the breakout as a turning point. Yet under the surface, indicators are flashing signs of fatigue, leaving the market at a delicate crossroads.
The push beyond $3.05 was significant — it snapped a descending trendline that had capped XRP’s progress for weeks. Analysts like Ali Martinez argue that this structural shift opens the door to higher levels, with $3.30 the first checkpoint and $3.60 the more ambitious target based on Fibonacci retracement levels.
At the same time, the advance has left technical gauges stretched. The Relative Strength Index on higher timeframes has pushed past 70, a reading that often foreshadows consolidation. On the four-hour chart, the indicator is well into overbought territory, while the daily figure reflects slowing momentum. History shows that such conditions usually spark profit-taking.
The $3 Battleground
Holding above $3 is now critical. Bulls need to defend this level — and ideally $3.10 — to keep upward pressure intact. Slipping beneath those thresholds could trigger a slide back toward $2.90 or even $2.70 if selling snowballs. For now, traders are treating $3 as the line between an extended rally and a near-term correction.
Market Backdrop
Broader sentiment remains supportive. Expectations of a Federal Reserve rate cut in September are fueling demand for risk assets, and crypto is benefiting from those flows. XRP has already gained more than 12% this week and was recently trading near $3.17.
Still, the rally has become almost self-reinforcing: every new high pulls in fresh buyers, while overbought readings warn the trend is running too hot. That tension — between technical caution and bullish momentum — will determine whether XRP can build on its breakout or cool off before the next move.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/xrp-price-update-bulls-defend-3-overbought-signals-flash-warning/