The price of XRP is below key resistance with RSI bullish divergence, which means that the time when it gets above the range of 3 is probably soon.
XRP is now exhibiting technical indications that a huge breakout can be imminent. The price action is closely condensed just below the big resistance levels, namely, the 50, 100, and 200 Exponential Moving Averages (EMAs), a setup that traders are looking at keenly in terms of future price action.
This structure implies that buyers and sellers are waiting to be pushed decisively. One of the most significant indicators of momentum, the Relative Strength Index (RSI), is showing bullish divergence.
As XRP prices have been developing lower lows, the RSI has been recording higher lows. Such a tendency is a sign of falling downward momentum that suggests a possible reversal and an upward movement.
A recent social media market update by a respected crypto analyst pointed out this point clearly, noting that XRP is coiling directly under big resistance, and that the RSI is indicating that the move has strength.
Source – X
Resistance Clusters Define Near-Term Battle
XRP is exhibiting a thick cluster of resistance around the 2.50 to 2.70 range, which is close to EMA 50, 100, and 200.
Traditionally, these confluences are the crossroads of decisions when the subsequent trend movement is frequently determined.
This might be a firm sign of bullishness since traders believe that once XRP manages to break and close above these intersecting EMAs, it could be a strong sign.
A chart structure analysis of XRP reveals that this compression around the resistance is a dramatic setup. Once the price breaks above the zone, it can retest the psychological levels near $3 and above in a short time.
Nonetheless, the inability to overcome these obstacles may result in further consolidation or even the reverse movement to the previously consistent areas below $2.40.
Short-term signals indicate an upward trend.
Besides moving averages, there are additional indicators of momentum that validate the optimism in XRP.
The bullish divergence of the RSI is a seriously alarming indicator of declining selling action and increasing buying interest.
This kind of divergence is usually followed by substantive uptrends, which allows traders to have confidence in short-term strength.
This technical backdrop is also supplemented by fundamental factors. Recent market coverage highlights a rise in institutional inflows and optimistic macro-underpinnings of XRP price recuperation.
A set of strong technical configurations and the growing investor confidence is a good indication that XRP may soon be back into the levels of over 3, which is a significant psychological and resistance level not experienced in recent bullish cycles.
