XRP trades well within bearish territory, but an emerging bullish divergence on the daily chart could spark a price reversal to greater heights.
XRP Shows Resilience
No doubt the market is falling, but XRP has shown strength compared to most other cryptocurrencies. Bitcoin is down 14.8% in the past seven days; Ethereum and Solana have corrected 16.2% and 18% in the same timeframe, but XRP has a milder 13% decline.
Analyst “Guy on the Earth” is in awe of this resilience. He highlighted that he couldn’t believe that XRP would be above $2 when Bitcoin dropped to $91,000. Notably, BTC has fallen further to $89,520, but XRP remains well above the $2 price mark, changing hands at $2.14.
XRP Could Bounce from Here
Furthermore, the commentator identified a developing bullish divergence on the daily chart, with the potential to spur a price rebound. An accompanying chart further elaborates on the divergence between XRP’s price action and the relative strength index (RSI).
XRP has been trending on a lower low pattern since the October 2 high of $3.10. The coin fell from the resistance area to the October 10 low and has continued to make new lows after each lower high formation.
However, the RSI has been making higher lows. These conflicting developments align with the bullish divergence pattern, which usually precedes a price recovery. The analyst expects the rebound to start playing out soon, if it will.
Notably, the target for this run would be a retest of the resistance at $2.70, where it previously faced rejection during a lower high formation on October 27.
Prospects of Further Price Lows
Nonetheless, XRP could correct further from here, according to “Guy on the Earth.” He warned that the $2.2 support was an opportunity for paper hands to exit the market, and the bull market support around $1.90 and $2 is the “last chance.”
If bears conquer the $2 support as they did to the $2.2 zone, then the analyst predicted a longer consolidatory phase. He asserted that XRP could reach $0.85, a low last seen in mid-November 2024. From the current trading level, this represents a 60.2% decline.
Meanwhile, parallel analyses do not agree with this. Cryptollica shared that while XRP might drop below $2 to retest $1.95, he expects a bounce from that area to a new all-time high of $10 per coin.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
