XRP Forms Bearish Falling Star as Overbought Signals Flash

XRP is flashing a classic bearish reversal sign after a strong altcoin rally, forming a falling star candlestick pattern on the daily chart. This technical formation—marked by a long upper wick, small real body, and little-to-no lower shadow—often signals a short-term top, especially when appearing after an extended bullish phase.

On the latest daily candle, XRP spiked to a local high of around $3.70 before sellers pushed the price back down, indicating strong intraday rejection. The asset is now trading near $3.49, still holding significant week-to-date gains. However, warning signs are building. The Relative Strength Index (RSI) has surged past 88, placing XRP in overbought territory—a level that historically precedes either consolidation or corrective pullbacks.

Despite recent bullish momentum, driven by institutional demand and surging volume, XRP’s move appears increasingly speculative. Without solid structural support, the rally risks losing steam. The falling star pattern suggests that if the next candle confirms with a red close and higher selling volume, a correction toward $3.20 or even $3.00 is likely.

XRP has outperformed many of its Layer 1 counterparts in recent weeks, but market sentiment may be shifting. Bulls must now defend key psychological and technical levels to prevent deeper retracement. As trading volume normalizes and euphoria wanes, XRP could either consolidate or slide lower.

Traders should monitor the next few sessions closely. A confirmed falling star pattern could mark the beginning of a short-term reversal, especially if sell pressure continues to rise. Whether this marks a pause or a full trend reversal will depend on upcoming price action and broader market dynamics.