XRP is most definitely in the bullish territory. Its market capitalization broken above $130 billion—the highest since market close on March 27. According to technical indicators, there could be room for additional upside, but they do point to important support levels to monitor if momentum runs out of steam. An ongoing rally might take XRP closer to $2.50. If downside pressure lingers, it could push the price below $2 worth of stability.

Bullish Indicators Stack Up

XRP has been on an impressive run against the bears, up around 6% in price over the last week. A few technical indicators hint at more bullish momentum ahead.

Additionally, the EMA lines have crossed to create multiple consecutive golden crosses. This continuation bullish pattern usually indicates the beginning of a new uptrend. The Ichimoku Cloud setup is bullish, which adds to the bullish outlook. The Tenkan-sen (blue line) is above the Kijun-sen (red line), meaning that there is short-term bullish momentum. The Chikou Span, shown as the green lagging line, is located far above the cloud. This positioning further ensures that the current momentum is supported by highly positive price action from history.

Overbought Territory and Potential Resistance

At the time of writing, XRP’s RSI had reached 76.19. This high mark means that XRP has begun trading in overbought territory for the first time in more than a month. This signals bullish buying momentum. The prudent trader will be on the lookout for signs that momentum is weakening and a consolidation is developing.

If the bullish momentum continues, XRP may be able to rally further up towards the resistance at $2.50. After that, additional resistance can be found at $2.64, $2.74 and $2.83. Such levels may still serve as potential sticky points for XRP during its ongoing climb up.

Key Support Levels to Watch

Despite the bullish indicators, we need to be realistic and identify potential downside risks. If momentum were to evaporate and the trend reverse, XRP would drop to re-test support at $2.18.

An invalidation of the $2.18 support level may trigger a steeper retracement targeting $2.03. The next big support level comes in at $1.90 and then $1.61. These price points mark major zones of support, where buying interest may be able to step in and stop any additional slide in this pair. In the case of XRP, yesterday’s RSI was 51.4, indicating positive momentum. This explosive move shows an extremely bullish level of buying pressure, driving the asset into overbought territory. If bearish pressure continues, XRP might test the $2 psychological level.