RSI on XRP creates an intriguing reversal signal — analysts point to a forgotten pattern

The technical picture of XRP is taking an interesting shape. The community of analysts is observing how the coin’s price systematically declines, but the RSI indicator is doing something completely different — gradually strengthening. This contrast between price movement and momentum dynamics is known as a bullish divergence, a formation considered one of the most intriguing early warning signals in financial markets.

Unusual Pattern on the Daily Chart

Recently, crypto analysts have noticed an intriguing scenario unfolding on the daily timeframe of XRP. While the asset consistently tests lower levels, the Relative Strength Index (RSI) records higher lows. This divergence — when the price falls but momentum rises — is regarded as one of the “unusually rare phenomena on the daily chart of this asset."

History offers an interesting lesson. In 2022, when XRP was fighting near $0.28 (in the middle of a bear market), a very similar pattern appeared. What happened next? The coin stabilized, the trend shifted from down to up, and then it entered an aggressive rally that led it to new all-time highs.

The current situation mirrors that scene. The chart shows a descending support line, while the RSI draws an upward line. The interpretation is simple: “selling pressure is weakening, and buying strength is discreetly gathering."

How does this formation work?

RSI divergences appear near turning points. When the price falls but the momentum indicator does not follow it downward, it signals that the declines may be losing strength. This is what traders have been observing on XRP since early October, when the price action reversed downward. For several months, the coin was consistently testing new lows, but the RSI behaved politely — rising instead of falling along with the price.

According to current data, XRP is trading at $2.05. For context: this represents an increase from the levels of 2022, but the market is still awaiting a confirmed breakout from the ongoing consolidation phase.

Is this a guarantee of reversal?

No — and analysts are honest about this. No technical signal is guaranteed. However, this RSI setup is described as “one of the strongest early signals indicating a change in direction." Divergence shows potential, not certainty.

For the signal to gain credibility, XRP must stabilize above recent lows and initiate a decisive upward move. If the RSI continues forming higher lows, it will complement the momentum shift picture. However, if buyers fail at current levels, the entire formation could lose significance.

What should we expect?

If history repeats itself, XRP could enter a phase of gradual recovery. After confirming the signal, the asset might start climbing toward higher peaks. However, every scenario depends on whether the market truly changes direction or if the divergence turns out to be a false alarm. We await the first confirming moves — stabilization above recent lows and the beginning of an upward trend. That will be the moment when this intriguing signal on the chart could become a market reality.