XRP has surged 46 percent over the past seven days but the rally has slowed after it hit resistance near $1.55.

Decrypt reported on Aug. 25 that XRP closed at $1.4554 on the latest daily candle. It was rejected from an intraday high of $1.5505 and has fallen for a second straight day.

The pullback is not limited to XRP. The broader major cryptocurrency market has quickly shifted this week from a "fear" zone to an "extreme greed" zone, with some profit-taking emerging. Still, XRP’s decline was presented as relatively small compared with other losers among the top 10 cryptocurrencies.

Market participants are focusing on the combination of a sharp short-term surge and a bearish medium-term structure that remains in place. XRP stayed weak from April to July, then bottomed near $1 in early August. It then rebounded about 55 percent in a near-vertical move to $1.55. The average directional index, which shows trend strength, was at 44.8, interpreted as a signal that the rebound was a strongly directional move rather than a weak technical bounce.

Warnings are also emerging that the upside momentum has overheated. The relative strength index was measured at 76.8. It is typically considered overbought when above 70. The outlet said the current reading is "closer to a warning of overheating than a green light for recovery."

The moving-average structure that reflects the medium-term trend has not fully turned. XRP’s 50-day moving average sits below its 200-day moving average, which the market calls a "dead cross." The outlet said the "medium-term path still points downward." Prices have risen above both moving averages on the recent August rebound, but the surge alone does not immediately resolve the bearish alignment.

The key price area is near $1.55. A scenario was presented in which XRP could attempt further gains to $1.5824 and $1.6227 if it regains $1.5507 and turns it into support. That scenario comes with conditions that momentum must continue without the price breaking down and the overheated RSI must cool.

A downside scenario is also clear. If XRP loses support at $1.4342, the recovery could be pushed back toward the early-August bottom area. If the daily close falls below $1.4342, the $1.4 area and $1, the starting point of this rebound, could come back into view.

The move is seen as a zone that will determine whether the short-term rebound leads to a medium-term trend reversal or remains a temporary bounce that stalls below resistance. Decrypt viewed the base case as further declines toward $1.4342 until $1.5507 is reclaimed. As a result, the XRP market is expected for now to gauge its next direction around whether it breaks through $1.55 resistance and holds $1.4342 support.