Ripple's rally its fever pitch: Are we overheating at $0.70?

TLDR

• XRP is currently contesting a significant resistance level at $0.70, with potential targets of $0.86 to $0.89 if surpassed.
• Technical analysis suggests a pullback could be likely, with the $0.62 mark as a potential new support zone.
• Daily RSI indicates overbought conditions, but no bearish divergences are evident yet.
• We advise caution with new XRP positions at current levels, recommending a DCA approach if the price retraces to $0.62.

Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

Having cleared easily through several of its horizontal resistances, XRP is now testing the main horizontal resistance of $0.70. If XRP can break above it, then $0.86 to $0.89 is on the cards for XRP, but it would be a massive move up. 

We expect some form of pullback when XRP slows down; whether that’s now or that's closer to $0.86 is hard to say. If there is a breakdown, we expect the $0.62 area to become the new horizontal support for price.  

XRP 3D

Mechanics

The RSI on the daily is heavily overbought, but on the 3D timeframe, it's only recently moved into overbought territory. There are no bearish divergences that we need to be aware of as of yet, though.  

The funding rate is very positive, and the open interest has spiked higher. This suggests to us that this is somewhat overheated here.

Cryptonary’s take

We would be cautious about adding fresh buys/longs to XRP at this price. If XRP can retest $0.62 as support, then this might be a good spot to DCA into XRP for the long term.