Gate Square “Creator Certification Incentive Program” — Recruiting Outstanding Creators!
Join now, share quality content, and compete for over $10,000 in monthly rewards.
How to Apply:
1️⃣ Open the App → Tap [Square] at the bottom → Click your [avatar] in the top right.
2️⃣ Tap [Get Certified], submit your application, and wait for approval.
Apply Now: https://www.gate.com/questionnaire/7159
Token rewards, exclusive Gate merch, and traffic exposure await you!
Details: https://www.gate.com/announcements/article/47889
The bullish RSI divergence in XRP: A historic signal resurges
In technical analysis of cryptocurrencies, certain patterns appear so rarely that when they do, they deserve our full attention. XRP currently presents one of those uncommon setups: a bullish divergence in the RSI that hasn’t been seen since 2022, when the asset bottomed near $0.28. Trading experts have started to point out that this type of formation could anticipate significant price changes.
What does this divergence mean and why is it important
A bullish divergence occurs when the price drops but the RSI indicator rises simultaneously. In simple terms, this suggests that although the market continues to decline, selling pressure is waning and buyer momentum is quietly gaining strength. On XRP’s daily chart, this phenomenon is clearly visible: price lows keep falling, but the RSI marks higher lows, creating a divergence that has historically preceded major reversals.
What is truly notable is that this same bullish divergence formed three years ago, when XRP faced a prolonged bear market. After that signal, the asset stabilized, changed direction, and led a strong rally that pushed it to new all-time highs.
The historical context: 2022 vs. today
In 2022, XRP had experienced extended downside exhaustion, with months of accumulated selling pressure. When the bullish RSI divergence formed in that context, it was a turning point. The price moved from around $0.28 to gradually recover, demonstrating the predictive power of this technical pattern.
Today, XRP is in a similar but not identical situation. The asset has been trending downward since October, when a flash crash marked the start of this correction. It is currently trading near $2.06 with a -1.43% change in 24 hours. The divergence forming now suggests that, just like in 2022, the technical structure could be setting the stage for a change in momentum.
Critical points to watch
For this bullish divergence to gain validity and translate into a real upward move, XRP must meet certain technical requirements. First, the asset needs to stabilize above recent lows and establish higher lows in the RSI, reinforcing the pattern. Second, a decisive breakout upward would confirm that buyers have taken control.
If buyers manage to defend current support levels and continue forming higher lows in the RSI, the divergence will strengthen. Conversely, if the price falls below the lows and the RSI also drops, the pattern would weaken or be completely invalidated.
What is the expected scenario?
Analysts emphasize that nothing in the market is guaranteed. However, if XRP’s bullish divergence behaves as it did in 2022, the price could enter a sustained recovery phase. This does not mean an immediate explosive rally, but rather a gradual reversal that leads the asset to new highs over time.
The divergence does not confirm a reversal at this moment, but it does serve as an early signal that the balance between buyers and sellers could be shifting. For traders, this is the time to pay close attention to how the technical structure develops in the coming days, as XRP is at a critical decision point.