Xrp Price Flashes Classic ‘hidden Bullish Divergence.’ Is $5 Still...

XRP price charts are showing a hidden bullish divergence that has a history of preceding 50%-70% rallies in recent years.

Hidden bullish divergence on the XRP charts can provide some respite for the bulls.

Over $695 million in XRP shorts may face a squeeze if the price rebounds.

XRP (XRP) is flashing a familiar technical pattern that has historically preceded sharp short-term price rebounds.

XRP’s three-day chart shows a “hidden bullish divergence,” where the price forms higher lows while the relative strength index (RSI) posts lower lows. In technical analysis, most analysts perceive this pattern as a sign of weakening downside momentum.

Two such divergences appeared in XRP’s recent history.

The first formed in early 2022, leading to a 69% bounce before prices resumed their broader decline. The second emerged between late 2023 and early 2024, preceding a 49% rally that led to the price stabilizing.

Both examples show that XRP often saw quick rebounds after the hidden bullish divergence signal, but those rallies didn’t last long. In other words, this setup can spark short-term gains, but it does not necessarily mean a bullish reversal has begun.

XRP dropped 11.95% in the last 24 hours and was trading for as low as $2.229 on Tuesday.

“I’d be hoping to hold this range and spring back as the week goes on, but the bias is bearish in the moment,” said pseudonymous analyst Guy on the Earth, who spotted the hidden bullish divergence on the XRP charts.

Source: CoinTelegraph