Recent analysis of XRP indicates signs of bearish divergence, which may lead to increased market volatility.
Analysis of Bearish Divergence
Analysis conducted by Steph Is Crypto highlights the presence of bearish divergence. This condition occurs when the price rises, but momentum fails to keep pace. It is noted that with new price highs, momentum indicators do not show similar strength, indicating potential weakening of buying pressure.
Chart Structure and Key Levels
On the weekly chart, XRP has been climbing since early 2025, increasing from about $0.55 in November 2024 to $3.39 in January 2025. However, recent volatility has seen the price hover around $3. This resistance level is forming in the $3 to $3.3 range, illustrating insufficient strength for further upward movement.
Potential Implications for XRP
Bearish divergence does not guarantee a trend reversal, but it signals potential weakness in momentum. If XRP cannot maintain above $3, a pullback to $2 could follow, with risks of deeper corrections if market sentiment worsens. Otherwise, a breakout above the $3.3 level might invalidate the bearish divergence.
The current analysis suggests careful consideration regarding investments in XRP given the uncertainties surrounding its performance.
