Recent warnings from analyst STEPH IS CRYPTO have urged XRP traders to exercise caution after identifying potential bearish divergence on the charts.
Understanding the Bearish Signal
Bearish divergence occurs when momentum indicators fail to confirm higher prices, suggesting that underlying buying strength is fading. In XRP’s case, the weekly RSI has formed a sequence of lower highs while price continues to test resistance.
XRP’s Current Market Position
As of report time, XRP is trading at $2.80, giving it a market capitalization of roughly $168 billion. The token remains one of the most liquid digital assets, with multi-billion-dollar daily trading volumes across exchanges. This liquidity makes XRP sensitive to market flows and regulatory news.
Key Levels and Risk Management
Two key levels are identified: the rising price trendline that has consistently acted as resistance and the descending RSI line marking lower highs. A decisive breakout above both levels would weaken the bearish divergence narrative. Conversely, repeated failure could confirm weakening momentum, leading to a potential corrective move.
STEPH IS CRYPTO's warning of bearish divergence serves as a reminder that momentum may weaken even as price challenges resistance. Traders and holders should remain vigilant regarding current market dynamics.
