XRP has surpassed Tether in terms of market capitalization after a colossal price explosion in the last seven days, earning more than $ 14 billion. The digital asset had a wild run in the past four days after being flat for nearly two years.
The XRP / BTC pair has broken through several resistance levels in less than 100 hours, putting the RSI at levels not seen since December 2017. Despite this massive price surge, XRP is still falling around 82% from its all-time high of $ 3.84.
For comparison, Bitcoin is only down 7% from the all-time high and Ethereum around 58%. On the weekly chart, XRP has confirmed an uptrend after setting a clearly higher high now. The digital asset has broken through several resistance levels in a row, but some investors remain cautious.
– Big Chonis Trading😷 (@BigChonis) November 23, 2020
Big Chonis, a popular cryptocurrency trader and analyst, recently stated that he is looking to short XRP as there is 'too much euphoria'. Of course, the tweet was met with a lot of criticism, especially after the digital asset had another price move towards $ 0.60.
XRP price heading for a correction?
A significant correction for XRP seems highly likely considering the magnitude of the bullish move. On the 3-day chart, the RSI is widely spread at 90.5 and is gradually approaching the highest level of 94.35 that was established on January 1, 2018.
By drawing Fibonacci retracement lines, we can determine the most likely support levels on the way down. It looks like $ 0.50 will be a significant support point as it also coincides with the 0.236 Fib and is a psychological level.
Further down the line, the $ 0.382 to $ 0.425 level would be the next significant level. A break below this point would be noticeably bearish and could be seen as a reversal point for XRP.
It's unclear what's driving XRP's price in recent days, but the digital asset looks unstoppable for now. Can we see XRP hit $ 1 before pulling back?