Will XRP price lose 20% of market value after rallying to $0.56?

• XPR price has rallied 50% within a week.
• The RSI has reached extremely overbought territory.
• A breach above the high at $0.56 would invalidate the bearish thesis and could prompt a rally to $0.61.

XRP price makes impressive gains during the third trading week of September. Still, all markets are subject to corrections at some point. Traders should look for a potential 30% correction before more upside occurs.

XRP price moons!

XRP price has been a nostalgic cryptocurrency to trade this week as the digital remittance token has displayed very classical Elliott Wave tructures enabling swing traders to enjoy a genuine bull market environment. Ripple price has rallied more than 50% this week, reaching a high at $0.559 during an overnight ASIA session.

XRP price currently auctions at $0.50. A clear five-wave impulsive pattern is shown on smaller time frames while the Relative Strength Index has breached extremely overbought conditions. A Fibonacci Retracement tool surrounding the sharpest incline shows a 61.8% Fib level at $0.45. A fall into this level would be a 20% drop from the recently established highs. 

XRP USDT 3-Hour Chart

The volume profile is persistently tapering upon each consolidation while more volume pours during impulsive rallies. The volume pattern hints at the possibility of a $0.60 XRP in the coming days, but the drop to $0.45 stands a high chance of occurring. A breach of the $0.5590 high could invalidate the thesis of a pullback to $0.45 and kick off the next wave in the process. 

In the following video, our analysts deep dive into Ripple's price action, analysing key market interest levels. -FXStreet Team