XRP has recently experienced significant growth, surpassing USDT to become the third-largest cryptocurrency globally with a market cap of $154 billion, placing it at half of Ethereum's value. Despite this positive development, the current uptrend lacks strong momentum, with XRP nearing overbought conditions. If momentum increases, XRP could replicate the impressive price surge observed in 2024.

The relative strength index (RSI) for XRP is currently at 69.23, just below the key threshold of 70.0 that indicates overbought conditions. While assets usually see a price reversal when entering this zone, XRP defied this pattern in November 2024 by continuing its bullish run despite similar overbought levels.

For XRP to mirror its 2024 performance, the ongoing bullish trend needs to gain more momentum. The average directional index (ADX) is close to the critical 25.0 level, which confirms the strength of an uptrend. A breach of this threshold by XRP's ADX would indicate increasing bullish momentum, potentially sustaining the current rally.

Currently priced at $2.58, XRP has risen by 21% in the past week. While it managed to surpass the $2.56 resistance level, securing it as support is crucial for continued upward movement. Breaking the $2.95 barrier would set the stage for XRP to reach $3.00, mirroring its past strong price movements. However, without sustained strength in the uptrend, XRP risks falling back into overbought territory and experiencing a price reversal.

In the case of a downturn, XRP might drop below $2.56, potentially reaching $2.27, which could invalidate the bullish outlook and signal the end of the rally. The market's ability to maintain strength will be key in determining XRP's price direction in the near future.