XRP Surges Above $3: Buy or Sell?

XRP, the native cryptocurrency of the Ripple network, has been capturing investors' attention with its recent price action, surging above key resistance levels and consolidating around the $3 mark. This has sparked a debate among traders: is this the perfect opportunity to buy before another breakout, or is a correction on the horizon? Let's analyze the daily price chart and key technical indicators to determine the best course of action.

XRP recently broke through previous resistance zones and surged towards $3.01, forming a new local high. However, the price has pulled back slightly, now consolidating around $2.87. This retracement is a natural correction after a strong rally and could signal a potential accumulation phase before another leg up. The previous resistance levels have now turned into support, meaning buyers are stepping in whenever the price dips. If XRP holds above these levels, a breakout beyond $3.20 could be the next move, potentially pushing XRP towards new highs in the short term.

Looking at the Relative Strength Index (RSI), the 14-day RSI is hovering around 49.88, which is close to the neutral zone (50). This suggests that XRP is neither overbought nor oversold, meaning the market has room for another upward push. Previously, when the RSI dipped to similar levels, it preceded strong bullish rallies. If buyers step in at this consolidation phase, we could see another RSI breakout above 60, signaling renewed momentum in XRP’s uptrend.

A key observation in the chart is the support around $2.85-$2.87, which XRP is currently testing. This level previously acted as resistance before the price broke above it, and now it has turned into a strong support zone. If XRP holds above this range, it could confirm a bullish continuation pattern, making this dip a prime buying opportunity before the next price surge. However, a break below this level could lead to a deeper correction towards $2.50-$2.60, offering an even lower entry point for investors.

If XRP successfully maintains its support and breaks the $3.20 resistance, the next key price targets to watch are $3.50, $3.85-$4.00, and $5.00 and beyond. Given the