XRP's price is flashing warning signs to traders who watch momentum indicators. The token's relative strength index (RSI) sits above 74, a level that historically suggests the market has gotten ahead of itself. Meanwhile, the MACD momentum gauge is flat, and the price is hugging the upper Bollinger band — all three signals line up for a near-term shakeout.
Why the charts look stretched
The RSI reading above 74 puts XRP in clearly overbought territory. That doesn't mean the price is about to collapse, but it does suggest that the recent upward move has been sharp and that buying pressure is getting exhausted. The MACD, which tracks the convergence and divergence of moving averages, shows no new upward momentum. It's dead flat, meaning the engine that pushed the price higher has stalled.
Add the Bollinger band detail: XRP is riding the upper band, a position that often precedes a snap back toward the middle of the range. When price hugs that outer line, traders usually expect some kind of reversion, even if the broader trend stays intact.
The likely shakeout range
Given those conditions, a near-term pullback to $1.35–$1.39 is considered high-probability. That's the zone where buyers would step back in, according to the technical setup. The range sits just below where XRP has been trading, and it would offer a clearer entry point before any resumption of the upward move.
This type of shakeout is typical after a stretch that leaves price overextended. The market often needs to reset the short-term averages and let the overbought readings cool off. If that happens, the next leg up could target $1.65.
What the upside target depends on
The $1.65 target is the key level to watch. It would represent a meaningful gain from the current price, but it's not guaranteed. The bullish scenario requires the pullback to hold that $1.35–$1.39 support area. If the price breaks below that, the setup changes and the upside case weakens.
Traders are now watching whether XRP can actually dip to that zone and bounce, or whether the flat MACD stalls the move entirely. The indicator's lack of upward push suggests that a fresh rally needs some kind of fresh catalyst, not just technical momentum.
The next step
For now, the market is waiting to see if XRP delivers the expected shakeout. A drop into the $1.35–$1.39 band would be the first sign that the setup is playing out. The question is whether buyers show up there, or whether the overbought conditions lead to a deeper correction that resets the charts entirely.
