XRP's recent price action, registering a low at $1.78 before recovering above $2.50, presents a critical challenge. The altcoin is showing bearish divergence on the daily and weekly charts, raising investor concerns.
Bearish Divergence on XRP Charts
Over the past three months, XRP's parabolic rally increased its value from $0.50 to a high of $3.40. However, the recent slump has led to bearish divergence on both the daily and weekly charts, confirmed by the RSI indicator pointing to waning buyer momentum.
Implications of Bearish Divergences for XRP
The consequence of these bearish divergences could be a drop below $2, a 23% decrease from its current value. The altcoin formed a new low at $1.78, potentially creating new liquidity pockets.
Chances to Reverse Bearish Forecasts
There are opportunities to dismiss the bearish scenario if XRP can hold above the $2.90 level, which previously served as support and saw significant exchange activity on Binance and Coinbase.
The ongoing lack of clear direction could strengthen bearish sentiments, but a bullish market remains plausible with sustained recovery above $2.90. Investors should closely monitor market changes and make decisions based on conducted analysis.
