Cryptoinsightuk has highlighted a notable daily bullish divergence on the XRP/ETH pair. His chart shows XRP underperforming Ethereum for months, but momentum indicators are now suggesting a potential shift. This divergence is a key signal, often preceding trend reversals or relief rallies, especially in oversold markets.
Decoding the Chart
The XRP/ETH daily chart on Binance shows a steady decline along a downward trendline since April. Recently, XRP/ETH printed a fresh low, but the Relative Strength Index (RSI) did not follow. Instead, RSI carved a higher low around the mid-30s. The divergence between price and momentum is a classic bullish sign, indicating that selling pressure is weakening.
Volume patterns reinforce this picture. The sell-off into early August was accompanied by strong volume, but subsequent rebounds are seeing lighter participation, a pattern consistent with capitulation followed by stabilization.
$XRP / $ETH daily bullish divergence pic.twitter.com/3eRS5D520G
— Cryptoinsightuk (@Cryptoinsightuk) August 18, 2025
Why This Matters
A bullish divergence suggests that while XRP has been weaker than ETH, the tide may be turning. If buyers push the XRP/ETH pair back above the descending resistance line and RSI climbs above the 50 level, that would confirm a potential shift in relative strength. If, however, RSI fails to hold its higher low, the signal would be invalidated.
Current Market Context
As of now, XRP trades at about $3.01, holding steady after defending support in the $2.80–$2.95 zone. Ethereum (ETH) trades near $4,286. This context is critical: the divergence has developed while both assets remain firm against the U.S. dollar, with XRP showing early signs of basing after weeks of weakness.
The fact that XRP has managed to stabilize above multi-week support while printing divergence against ETH strengthens the case that the asset could be preparing for a relative rally.
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What to Watch Next
Traders should watch two levels closely. On the XRP/ETH chart, a daily close above the descending trendline would be the first strong signal that the divergence is playing out. On the RSI, reclaiming the 50 midline would add further confirmation of bullish momentum. On the USD pair, holding above $2.80 and pressing higher toward $3.20 would align XRP’s spot chart with the relative strength signal seen against ETH.
Cryptoinsightuk’s observation of a daily bullish divergence on XRP/ETH is a significant technical development. Divergences don’t guarantee outcomes, but they do increase the probability of a reversal or rally.
With XRP steady around $3 and ETH near $4.3k, the next few daily closes will be crucial in confirming whether this setup translates into a stronger XRP performance in the weeks ahead.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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