XRP Hot Streak Cools as Traders Hit a Wall: Where Does It Go Next?

The crypto market flipped from fear to "extreme greed" this week for the first time since 2024, and the Ripple-linked $XRP rode that wave hard.

$XRP, the cryptocurrency created by the co-founders of Ripple, erased its most bearish signal last week and took off, registering a 46% gain over seven days and topping a $91 billion market cap.

But, as is usually the case, what goes up must come down. And now $XRP’s hot streak is cooling, dropping as much as 2% earlier today.

$XRP isn't the only top-10 coin pulling back today, but among the decliners, $XRP's drop is one of the shallowest.

$XRP price: What the charts say

$XRP is trading at $1.4554 on the daily chart, down from a $1.5505 high, in a recovery that still hasn't escaped a longer-term downtrend.

For the better part of April through July, $XRP ground lower, bottoming near $1.00 in early August. Since then the move has been vertical—a roughly 55% rip to $1.55, with the Average Directional Index (an indicator that measures trend strength, regardless of direction) at 44.8 confirming this was no weak bounce but a strong directional leg.

But running too hot for too long can cause issues, and this leg ran straight to $1.55, then reversed. The latest daily candle closed at $1.4554 after opening at $1.4818, the second straight down day. This has the shape of a relief rally stalling under resistance, not a trend reversal.

The average price of the last 50 days (also known as EMA50) for $XRP is below the 200-day average in the formation traders call a death cross. When the shorter average sits below the longer one, the medium-term trajectory is still pointed downward, suggesting bearish times still ahead for the coin.

A death cross is a lagging signal—the sharp August rally lifted $XRP well above both lines before this pullback, which is why the recent strength didn't instantly flip the stack.

But with the death cross still on, $XRP’s bounce risks resolving into a bull trap if the market rejects $1.55 again.

The Relative Strength Index, or RSI, reads 76.8. RSI is a momentum gauge on a 0–100 scale: above 70 is overbought, below 30 is oversold. At 76.8, $XRP is stretched to the upside, a warning that the recovery ran hot rather than a green light.

The best argument for a bull scenario happens If $XRP reclaims and holds $1.5507, then drives toward $1.5824 and $1.6227. That needs what traders call the squeeze momentum to fire and RSI to cool without the price breaking down.

Bear case: $XRP loses the $1.4342 floor and the recovery slips back toward the early-August base. A daily close under $1.4342 puts the $1.40 shelf and the $1.00 origin of the rally back in play.

Until $XRP reclaims $1.5507, the base case is lower, a drift toward $1.4342 before the squeeze decides the next leg.