XRP's hidden bullish divergence suggests potential upward momentum, resembling its 2016-2017 surge of over 50,000%.
XRP is in a consolidation phase around $0.5634, with technical indicators hinting at a possible trend reversal soon.
Key support at $0.5634 and resistance at $0.60 could see a breakout if bullish momentum strengthens, driven by MACD signals.
Recent analysis by crypto analyst on X, @JavonTM1, highlights that XRP's current price action, is resembling with its historic performance during the 2016-2017 period. This earlier phase saw XRP rise dramatically by over 50,000%, increasing from approximately $0.0066 to over $3.30. Although exact repetition is never guaranteed in financial markets, there are emerging signs that XRP could experience a similar bullish trajectory once again, according to technical indicators observed.
https://twitter.com/JavonTM1/status/1824463745680077297 Signs of Hidden Bullish Strength Emerge
A notable feature of XRP's price action is the identification of hidden bullish divergence, a signal often seen as an indicator of underlying strength. Hidden bullish divergence is identified when the price shows higher lows, while the RSI indicates lower lows. Such a pattern reflects a temporary weakness in market sentiment but points to the possibility of buyers gradually re-entering. In past cycles, a similar pattern has been observed before a significant price surge.
In 2017, after the completion of a hidden bullish divergence, XRP experienced a substantial rally. Historical data reveals that after the divergence ended, the cryptocurrency entered an upward trend, surging sharply. The current data suggests a similar potential bullish move might be in play, as recent hidden bull divergence has been identified. Traders are closely monitoring the asset for any possible breakout that could follow this pattern.
XRP/USDT Consolidation Indicates Possible Reversal
A technical analysis chart of XRP/USDT shows the pair currently trading at approximately $0.5634, with no notable directional movement recently. The Relative Strength Index (RSI) sits near 49.71, indicating a neutral position, neither overbought nor oversold.
Source: TradingView
This neutral position is further supported by the MACD indicator, which suggests that bearish momentum is diminishing. The narrowing gap between the MACD and the signal line hints at a potential trend change, as shrinking histogram bars indicate reduced selling pressure.
Key Support and Resistance Levels to Monitor
Currently, XRP finds short-term support at the $0.5634 level, while resistance remains around the $0.60 mark. Price consolidation has been observed between these levels, with neither buyers nor sellers gaining the upper hand.
However, with technical indicators suggesting potential reversal signs, a breakout from the consolidation range could occur. Traders are keeping an eye on the price action, particularly any bullish momentum that could emerge should the MACD crossover occur.
The post XRP’s Bullish Signs Resemble 2016 Surge as Hidden Bull Divergence Signals Possible Breakout appeared first on Crypto News Land.
