Hidden bullish divergences signal potential momentum for XRP, resembling patterns seen before its 2017 breakout.
XRP’s current price action faces critical resistance near $1.35, with support around $0.45 to $0.50.
A possible death cross between the MA50 and MA200 may signal downside risks unless XRP breaks above key resistance soon.
According to crypto analyst JavonTM1 on X, XRP has confirmed another bullish signal as the market regains strength. JavonTM1 highlighted that this could lead to an intriguing phase for XRP, sparking renewed interest among traders. XRP reveals patterns that have historically influenced price movements, suggesting possible developments in the coming months.
https://twitter.com/JavonTM1/status/1846632522567844175
Hidden Bullish Divergences in Play
Currently there are hidden bullish divergences, a key signal indicating growing momentum beneath XRP’s price action. Historical data shows that such divergences can precede substantial upward movements. One major instance occurred in 2016, prior to XRP’s massive breakout in 2017, which saw prices soar from $0.006 to over $3.
A similar pattern is emerging in the present, with XRP experiencing consolidation between resistance near $1.35 and support around $0.45. Despite the price’s recent sideways movement, the underlying trend points to potential upward momentum.
Moving Averages Indicate Market Uncertainty
A closer look at the recent price activity, accompanied by the 50-period and 200-period moving averages (MA50 and MA200), provides insight into XRP’s medium and long-term market trends. Between mid-June and July, XRP was below both moving averages, confirming a bearish trend. However, a notable bullish reversal followed in late July, with prices rising above both indicators.
Source: Santiment
As the price fluctuates, the moving averages offer critical support and resistance points that will influence XRP’s future trajectory. The possibility of a death cross, where the MA50 falls below the MA200, could introduce downside risks unless XRP breaks above key resistance levels soon.
Support and Resistance Define Price Movements
Support and resistance levels continue to shape XRP’s market performance. The current support zone lies between $0.45 and $0.50, historically serving as a rebound point for the cryptocurrency. Meanwhile, resistance near $1.35 remains a crucial barrier.
If XRP surpasses this level, a potential rally could be in the cards. However, failure to hold support near $0.45 could trigger further downside, pushing XRP toward earlier lows around $0.25.
