XRP forms a rare RSI divergence: a signal of historical repetition

Ripple (XRP) is currently trading at $2.05, but its technical chart is telling a remarkable story. A cryptocurrency analyst recently revealed an intriguing phenomenon on the daily chart of XRP — a divergence between the RSI indicator and the price trend. Such divergences are extremely rare, making them valuable signals in the eyes of traders.

Bullish Momentum Amidst Price Decline

The current technical setup shows an interesting contradiction: XRP’s price is making lower lows, but the Relative Strength Index (RSI) is rising in tandem. This indicates that although selling pressure appears to dominate the market on the surface, underlying buying momentum is quietly strengthening. This divergence pattern is considered a precursor to a market reversal.

A similar phenomenon occurred in 2022, when the market was at a cycle bottom. During that period, XRP’s price hovered around $0.28, caught in persistent selling pressure. But after the RSI divergence signal appeared, the situation changed — XRP gradually stabilized and then launched a strong rally, eventually reaching new all-time highs.

Key Details Revealed by Technical Structure

From a chart perspective, XRP is running along a descending support line, while the RSI indicator is gradually rising. This misalignment has been gradually emerging since the flash crash in early October. For technically savvy traders, this suggests a gradual decline in downside momentum rather than a market collapse.

Every step of RSI’s ascent reinforces the validity of this divergence. Analysts point out that such signals “are among the strongest early reversal signals you can get.” However, they also emphasize the presence of uncertainty — “nothing is set in stone.”

The Next Critical Turning Point

XRP is now at a crossroads. For this divergence signal to be truly validated, the asset must find support above recent lows and initiate a clear upward move. As long as RSI continues to rise, the bullish narrative will become more solid.

Conversely, if buying pressure fails to hold the current support, this divergence could become invalid. But historically, once such signals are confirmed, XRP tends to undergo a prolonged correction phase, gradually moving toward higher price targets. This technical detail warrants ongoing attention.