XRP Prints Bullish Divergence On The Weekly Chart, But Is ATHs Still Possible?

Overview

XRP has recently attracted attention as a notable crypto trader highlighted a significant shift in its weekly chart. This shift, marked by a bullish divergence in momentum indicators, has reignited discussions about the potential for XRP to approach its previous all-time highs, despite the asset’s recent price stability.

XRP’s Technical Analysis

After a prolonged period of compressed price action, XRP is currently situated within a defined weekly price range that has persisted since the peak of the 2018 cycle. This range spans from the low-$2 area to the low-$3 region and has acted as a structural equilibrium, allowing XRP to navigate through various market phases. Since late 2024, XRP has consistently tested this range’s support and resistance levels without achieving a definitive breakout or breakdown.

The recent analysis provided by the trader points out a crucial difference in the current market dynamics compared to previous attempts at breaking out. Specifically, momentum indicators are forming higher lows, even as the price revisits established support levels. This behavior indicates that the selling pressure is diminishing, suggesting a weakening of distribution among sellers. The bullish divergence observed implies that sellers are exerting more effort for lesser downside results, reinforcing the notion that the market may be transitioning toward a more stable structure.

The chart shared by the trader illustrates this point, showing XRP’s price maintaining its position above range support while the underlying momentum trends upward. This consolidation phase is interpreted as a sign of absorption rather than weakness, where short-term traders are gradually being replaced by long-term holders. This shift is viewed as a positive development for market stability.

While the presence of a bullish divergence does not guarantee a return to XRP’s all-time highs, it does reintroduce the possibility in a manner that is technically credible. A sustained breakout above the upper boundary of the multi-year range would serve as a crucial confirmation of this potential. Until such a breakout occurs, the prospect of reaching previous all-time highs remains conditional. However, the emerging divergence indicates that the groundwork for a significant move may be in the process of formation.

From Author

The current technical setup of XRP presents an intriguing opportunity for traders and investors. The bullish divergence highlights a shift in market sentiment, suggesting that XRP may be laying the foundation for a potential upward movement. However, patience is essential as the market navigates through this period of consolidation. The broader market context, including capital rotation from equities and a decline in the US dollar, adds another layer of complexity to XRP’s situation.

Impact on the Crypto Market

• XRP is showing signs of bullish momentum, which could influence investor sentiment across the broader cryptocurrency market.
• The technical analysis indicates a potential shift in market dynamics, suggesting that other altcoins may also experience similar movements.
• If XRP successfully breaks above its multi-year range, it could trigger renewed interest in altcoins, leading to a potential catch-up phase in the sector.
• The ongoing macroeconomic factors, such as equities reaching record highs and a declining US dollar, may create favorable conditions for capital rotation into cryptocurrencies.
• The emergence of bullish divergences in altcoins like XRP could signal a broader trend, encouraging longer-term investment strategies in the crypto space.