XRP Price Analysis: Bearish Divergence Signals Potential Correction Ahead
XRP is experiencing a mixed performance today, with a slight decline of 1% to around $3.05. This drop has erased the gains seen in the past few days, raising concerns among analysts about a potential bearish divergence.
Analysts have been sounding the alarm about a significant bearish divergence for almost two weeks now. This technical pattern occurs when prices form higher highs while the Relative Strength Index (RSI) forms lower highs. It typically indicates weakening momentum before a price correction.
The last time such a divergence appeared on XRP’s chart was in late 2020 to early 2021. Following that pattern, XRP experienced a sharp decline, falling between 62% and 74% over the next few months. Analysts are now worried that a similar scenario could unfold once again.
Expectations for the Coming Weeks
If this bearish setup persists, XRP may enter a phase of sideways movement or gradual decline in the coming months. While there may still be short-term rallies, the overall trend is showing signs of exhaustion.
In terms of support levels, the first critical area to monitor is between $2.90 and $3.00, with $2.90 serving as a crucial support level. A breakdown below this zone could pave the way for a retest of $2.75. If selling pressure persists, the next significant support level is between $2.55 and $2.62.
Larger Price Structure Remains Weak
The broader price structure also raises concerns. Earlier this year, XRP witnessed a strong rally followed by sideways consolidation and a subsequent breakdown below support. Today’s pattern bears a striking resemblance to that scenario, hinting at the possibility of history repeating itself.
Overall, while XRP remains volatile and capable of short-term price spikes, the current technical outlook suggests exercising caution. Unless buyers step in to reclaim the trend, the market could face further downward pressure before any sustainable recovery takes place.