The XRP price is sending promising signals through a bullish RSI divergence observed on the daily chart, a pattern that previously preceded the recovery after the 2022 bottom. The cryptocurrency, which is trading around $1.85 with a 1.38% decline in the last 24 hours, may be approaching an important inflection point.
What Does the Bullish RSI Divergence Mean?
Bullish RSI divergence is a technical indicator where the price hits a lower low, but the RSI indicator forms a higher low. This happens when there is less selling pressure despite the price falling, suggesting that the downward momentum is weakening. The same pattern appeared near the market bottom in 2022, marking the start of a substantial recovery.
On-Chain Data Reinforces Confidence
On-chain data reveal an interesting scenario: long-term holders are reducing token circulation, which has historically preceded periods of appreciation. When experienced investors decrease selling and accumulate positions, it is a sign that they believe a recovery is near.
Key Levels to Watch
A close above $1.96 could potentially confirm a true trend reversal, paving the way for a broader bullish move. On the other hand, if XRP fails to sustain the levels and drops below $1.76, selling pressure could intensify. Currently, with the price at $1.85, the market is in a critical zone where the next moves will determine the short-term direction.
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The XRP Indicates a Possible Reversal with Positive Technical Signals on the Daily Chart
The XRP price is sending promising signals through a bullish RSI divergence observed on the daily chart, a pattern that previously preceded the recovery after the 2022 bottom. The cryptocurrency, which is trading around $1.85 with a 1.38% decline in the last 24 hours, may be approaching an important inflection point.
What Does the Bullish RSI Divergence Mean?
Bullish RSI divergence is a technical indicator where the price hits a lower low, but the RSI indicator forms a higher low. This happens when there is less selling pressure despite the price falling, suggesting that the downward momentum is weakening. The same pattern appeared near the market bottom in 2022, marking the start of a substantial recovery.
On-Chain Data Reinforces Confidence
On-chain data reveal an interesting scenario: long-term holders are reducing token circulation, which has historically preceded periods of appreciation. When experienced investors decrease selling and accumulate positions, it is a sign that they believe a recovery is near.
Key Levels to Watch
A close above $1.96 could potentially confirm a true trend reversal, paving the way for a broader bullish move. On the other hand, if XRP fails to sustain the levels and drops below $1.76, selling pressure could intensify. Currently, with the price at $1.85, the market is in a critical zone where the next moves will determine the short-term direction.