XRP and the Bullish Divergence: A Technical Buy Signal in Focus

The Ripple token XRP is currently trading around $1.38 and is in a critical phase between hope and uncertainty. A technical phenomenon called bullish divergence is increasingly drawing the attention of chart analysts and could indicate that the current downtrend is nearing its end. While traders and investors await clarification, signs of a potential trend reversal are becoming more evident.

Price Consolidation Indicates Tension

XRP has gone through a typical cycle in recent months: after a strong rally in July, a sideways phase followed that lasted until October, before a steady downtrend set in. Since November, the cryptocurrency has continued to decline with less momentum. The current price pattern reveals classic market tension—a narrow trading range that usually precedes a significant breakout.

Technical analysis suggests that a breakout upward could lead to resistance between $2.00 and $3.00, while a fall back could target the $1.50 mark. The zone around $1.86 remains the key support level. As long as this level holds, there is a possibility of a structural change. Notably, there is a historical parallel: XRP has been trading below the 50-week moving average for over two months—a pattern that preceded an earlier 850-percent rally.

RSI and Bullish Divergence – The Signal Behind

The bullish divergence appears in a classic pattern: while XRP forms new lows, the Relative Strength Index (RSI) moves in the opposite direction, marking higher lows. This configuration suggests that selling pressure is waning, even though the price has not yet moved upward. Particularly significant is the RSI climbing out of oversold levels—a potential sign that buyers are starting to build positions.

This divergence between price movement and momentum indicator is interpreted by chart analysts as an early warning signal for a possible trend reversal. The message is: the market may be ready for a reassessment, even if this is not yet visible on the price chart.

Critical Support and Resistance Levels

From a technical perspective, XRP’s daily prices appear indecisive. The $2.00 level acts as an important resistance—a close above this area could open the door to $2.75. Intraday, XRP is moving within a narrow range. A retest of the $1.82 mark with a bullish reversal could generate upward momentum, while a decline to the $1.98 resistance zone without a breakout could set up a short position.

For traders, this presents a two-sided trading logic: buyers should watch for signs of a bottom around $1.82, while sellers might wait for rejections at the $1.98 level.

Exchange Outflows Signal Behavioral Change

Another indicator of potential price movement lies in on-chain data analysis. XRP holdings on centralized exchanges have fallen to 1.6 billion tokens—the lowest level in seven years, a dramatic decrease from October’s 3.76 billion tokens.

This decline in circulating supply on trading platforms could signal several things: either decreasing selling interest or a shift toward long-term custody in self-managed wallets. Both suggest that investors may be holding their XRP with longer-term optimism rather than quickly selling off. This behavioral change adds another layer to the bullish divergence scenario and a possible upcoming price recovery.