XRP shows an intriguing technical setup: the bullish RSI divergence worth monitoring

In the current cryptocurrency market context, XRP is capturing the attention of technical analysts due to a particularly interesting chart formation. While the cryptocurrency’s price has remained relatively consolidating in recent weeks, the underlying indicators are sending messages that are anything but ordinary. At the current price of $2.06, XRP shows a bullish divergence of the RSI on the daily timeframe – a significant phenomenon that rarely appears on this asset’s chart.

The Rare Pattern Emerging from the Daily Chart

The bullish RSI divergence represents one of the most interesting technical signals to observe carefully. This occurs when XRP’s price hits increasingly lower lows, while simultaneously the RSI momentum indicator creates progressively higher lows. Such divergence suggests an important change in market dynamics: selling pressure is gradually waning while buyer momentum is quietly but significantly accumulating.

This same configuration was historically observed in 2022, during the market bottoming phase, when XRP was trading near $0.28. What followed that event was a price stabilization, a decisive trend change, and subsequently a sharp rally that took the asset to new all-time highs. The rarity of this formation on the XRP daily chart makes it particularly worthy of attention from traders and investors monitoring the cryptocurrency’s developments.

Historical Context and Significance of Divergence Signals

RSI divergences traditionally represent crucial inflection points in markets. In 2022, XRP underwent a prolonged weakness phase before momentum finally changed direction. The historical structure on which the current comparison is based provides a fascinating context for evaluating the present situation.

The current technical setup shows XRP following a descending support line while the RSI is gradually rising. This pattern began to form around the early October flash crash, and since then the cryptocurrency has maintained an overall downward trend. The alignment of these elements signals a potential loss of bearish momentum rather than a confirmed break of support levels. Although nothing is guaranteed in financial markets, this configuration indeed represents one of the most solid early reversal signals that can be observed from a technical perspective.

What to Monitor in XRP’s Next Movements

From a technical standpoint, XRP is currently at a pivotal decision point. For this divergence to gain full credibility and translate into a directional move, the asset must first stabilize above recent lows and begin a determined upward movement. Continuous rising lows on the RSI would progressively strengthen the hypothesis that a change in momentum is actually occurring.

If buyers fail to maintain the current levels, the divergence could lose relevance or completely dissolve. Conversely, if this setup is confirmed, historical precedents indicate that XRP could enter an extended recovery phase, gradually climbing toward higher levels and potentially new peaks. The upcoming period will be crucial in determining which scenario will prevail in the cryptocurrency market.