XRP Overheated? Crucial Metrics Tease Possible Cycle Top

XRP is experiencing waning momentum in the cryptocurrency market, less than 24 hours after inching close to its all-time high (ATH). According to CoinMarketCap data, the digital asset has experienced a significant decline in volume from its previous levels, which had previously pushed its price up.

XRP’s RSI points to overbought conditions

Notably, over the last 24 hours, XRP’s trading volume has plunged by 50.69% to $11.37 billion, entering the red zone. This has raised concerns that the asset may be overbought following its bullish rally.

Within the same time frame, XRP has also experienced a price dip as investors begin to pull back from the market space. As of this writing, XRP was trading at $3.43, representing a 0.48% decline over the period.

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Generally, the rapid rise of the coin attracted many investors who anticipated a possible breakout to higher levels in the $4 range. This optimism was likely fueled by the regulatory clarity in the stablecoin market from the Genius Act.

However, with XRP slipping into overbought territory, as indicated by the Relative Strength Index (RSI) at 76.72, the coin is unlikely to continue its upward trajectory, potentially forming a cycle top at $3.65. Some traders are now concerned about the possibility of major corrections if the volume plunge prolongs.

XRP ETF speculation and investor sentiment

As it stands, XRP whales may need to step in to prevent further decline through aggressive accumulation. XRP could experience severe corrections, potentially leading to a loss of recent gains and a drop below the $3 price range.

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Additionally, XRP could benefit from some positive news about the exchange-traded fund (ETF) filing with the U.S. Securities and Exchange Commission. While an XRP ETF approval may not automatically translate to price gains, it could help stabilize the capital inflow into the ecosystem in the long term.

Investors are still placing significant bets on XRP, which has demonstrated resilience in 2025. Dave Portnoy, founder of Barstool Sports, and others like him are beginning to regret selling off their XRP holdings, as they now see the asset has potential for higher levels.