The ‘Bullish Divergence’ Signal: Why XRP Could Be Poised to Rise

The ‘Bullish Divergence’ Signal: Why XRP Could Be Poised to Rise

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XRP is trading around $1.87 as the price falls, volume remains steady and analysts watch key levels for a possible breakout or collapse.

Ripple’s native token, XRP, is trading in a narrow range near key support, compressing price action and holding steady volume. With the asset holding near $1.87 at the time of writing, traders are watching for a move that could set the price in the near term. This arrangement often precedes a pause in either direction.

Market structure indicates tension

According to BitGuru, XRP follows a common cycle: an initial rally, followed by a long consolidation, and then a gradual downtrend. Recent price behavior fits this description. The strong move in July gave way to sideways action through October, after which a steady decline occurred. Since November, XRP has continued to fall, but without strong momentum.

The current pattern suggests that pressure is increasing. A breakout could lead to resistance levels around $2 to $3, while a breakout could push the price towards $1.5. Traders keep an eye on this area as the bandwidth narrows and volume remains active.

Additionally, ChartNerd be into a developing bullish divergence. While price has formed lower lows, the Relative Strength Index (RSI) is moving in the opposite direction, creating higher lows. This setup could indicate that the sale is losing momentum even though the price has not yet responded.

The RSI is also climbing from the oversold level. This could be a signal that buyers are starting to engage, even if the price remains flat. For now, the $1.86 zone remains the key level. If current support continues, a structural shift may occur.

As previously reported,

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Technical zones for traders

CryptoWZRD described XRP’s daily candles are indecisive. The $2 level is seen as major resistance. A close above that area could open the way to $2.75.

“My expectations will remain rational ahead of the annual transition,” the analyst wrote.

In the intraday view, the chart traded within a narrow range. A retest of the $1.82 level with a bullish reversal could create upside momentum, while a retest of the $1.98 resistance with a rejection could provide a short trade setup.

Meanwhile CW reported holdings of XRP on exchanges has fallen to 1.6 billion tokens. This is the lowest level in seven years, compared to 3.76 billion in October. The drop in supply may reflect a decline in interest in selling or a shift toward longer-term storage.

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