Bearish Divergence Warning for XRP Traders
Analyst STEPH IS CRYPTO has flagged a bearish divergence on XRP’s weekly chart. While XRP price has reached higher highs along a rising trendline, the Relative Strength Index (RSI) is marking lower highs at around 54.8. This weekly divergence suggests weakening momentum. At $2.80 and a $168 billion market cap, XRP remains highly liquid, making it sensitive to market flows. Key technical levels include the ascending resistance trendline and the descending RSI line. A failure to break these levels could trigger a corrective pullback toward weekly moving average supports. Additionally, large XRP transfers to exchanges hint at growing selling pressure. Traders should manage risk by adjusting position sizes, tightening stops, or hedging until a clear breakout or breakdown is confirmed. Weekly closes will determine if XRP can invalidate this bearish divergence or move into a correction.
Bearish
Weekly bearish divergence on XRP’s RSI indicates fading momentum despite rising prices. Historically, similar weekly RSI divergences in crypto, including XRP’s 2021 peak, preceded corrective declines. The current signal, combined with large exchange inflows, suggests growing selling pressure that could trigger a pullback in the short term. Traders may see increased volatility and lower prices toward weekly moving average supports. In the long term, if XRP can break above the resistance trendline and reverse the RSI downtrend, it could resume its uptrend. However, failure to do so tends to confirm a deeper correction. Therefore, this news is bearish as it raises the probability of near-term downside before any potential recovery.