XRP Hidden Bullish Divergence Signals $5 Rebound amid Short Squeeze
XRP’s three-day chart shows a hidden bullish divergence as price sets higher lows against a declining RSI, mirroring signals that preceded 69% and 49% rebounds in early 2022 and late 2023. Trading at $2.23 after a 12% drop, XRP finds critical support at $2.20 and between $1.90–$2.00, with low long-side liquidity below $2.16. A breakout above the symmetrical triangle pattern and resistance zone ($2.60–$3.50) could trigger a short squeeze on over $695 million of XRP short positions and fuel a rally toward $5 (115% upside). The convergence of RSI divergence, limited downside risk, and heavy short exposure suggests a bullish near-term outlook for crypto traders.
Bullish
The hidden bullish divergence on XRP’s RSI indicates waning downside momentum, as seen in past 50–70% rallies (69% in early 2022, 49% in late 2023). Combined with robust support levels around $2.20 and $1.90–$2.00 and scarce long-side liquidity below $2.16, this environment limits further downside. Over $695 million in short positions concentrated at $2.60–$3.50 sets the stage for a potential short squeeze if price breaks the symmetrical triangle resistance. These factors combined support a bullish short-term outlook, with the possibility of accelerated upside toward $5.