XRP's 30% Surge Falters: 10% Dip Despite US Crypto Reserve Inclusion

XRP Dips 10% Despite US Crypto Reserve Inclusion

XRP, the native cryptocurrency of the Ripple network, surged 30% yesterday following its inclusion in the US crypto reserve. This pushed its price above $2.90 for the first time in a month, igniting strong bullish momentum. However, the altcoin slumped 10% a day later, 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's Relative Strength Index (RSI) reached 84.5 - its highest level since December 2, 2024 - signaling extreme bullish sentiment, often preceding a short-term correction. Now sitting at 63, XRP's RSI has cooled off from its overbought zone, reflecting the recent retracement in price. While a reading above 60 still suggests bullish momentum, the decline from extreme levels could indicate that buying pressure is waning. If RSI continues to decline toward the neutral 50 zone, XRP could see further consolidation or even a deeper pullback. However, if buyers step in again and push RSI back above 70, it could signal renewed strength and another potential attempt at higher price levels.

XRP Ichimoku Cloud chart analysis shows that the price saw a sharp breakout above the cloud (Kumo) following its 30% surge after being included in the US crypto reserve. This breakout confirmed a strong bullish move, with XRP moving well above both the Tenkan-sen (blue line) and Kijun-sen (red line), signaling short-term and medium-term trend strength. The sharp spike pushed XRP into overextended territory. However, as seen in the last few candles, a pullback has started, bringing the price closer to the Kijun-sen. This suggests that while the uptrend remains intact, the market is reassessing its recent gains, and XRP is testing key short-term support.

If the price holds above the Kijun-sen, XRP price could consolidate before making another attempt at higher resistance levels. However, if the correction deepens and XRP falls back toward the cloud