Cryptocurrency analyst Cryptoinsightuk stated on X (former Twitter) earlier today that XRP may be gearing up for a “blast off” in 7 days. However, he noted that XRP has seen some retracement today after running into key Fibonacci retracement levels.
While XRP is still up over 25% since Cryptoinsightuk started the countdown to a potential rally, he feels a deeper pullback may occur before the “party really gets going.”
Cryptoinsightuk believes the major XRP rally will gain momentum once the price pushes through key Fibonacci retracement levels at 0.618, 0.702, and 0.786. These represent the golden ratio Fibonacci levels that often act as support and resistance on pullbacks within overall uptrends.
Clearing these retracement levels would indicate strong buying momentum is supporting the next leg up for XRP. Surpassing these Fib levels likely signals the point when FOMO kicks in and the XRP rally starts feeding on itself in a self-fulfilling breakout.
He is watching to see if XRP bounces from current levels around $0.62 or potentially moves lower to flip that previous resistance into support.
Looking at the chart, XRP recently broke out of an Ascending Triangle pattern, moving above the 200-day moving average and $0.55 resistance level. This signaled a resumption of the uptrend with price reaching the target of $0.68. However, XRP is now very overbought as it reached that resistance.
XRP still has a nice surge of over 15% in the last 7 days and is currently trading around the $0.69 level.
Looking at technical indicators, the RSI for XRP is currently around 64 which puts it in overbought territory. For a sustainable blast-off as Cryptoinsightuk is expecting, the RSI would likely need to retreat to neutral or oversold levels below 30.
XRP investors will be closely monitoring the key Fibonacci retracement levels and RSI for signs of the next major move. A retracement to relieve overbought conditions would provide a healthier foundation for the anticipated uptrend. But Cryptoinsightuk cautions there could be more downside first before XRP is ready for lift-off.
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