XRP’s weekly chart may be flashing a warning sign, with technical signals hinting at weakening momentum.
A recent analysis by Steph Is Crypto (@Steph_iscrypto) highlights the presence of bearish divergence, where the price pushes higher but momentum fails to keep pace. This pattern suggests the possibility of increased volatility as XRP trades near its recent highs.
While the asset’s price has been trending higher, momentum indicators no longer support the same strength. The analyst described this as a bearish divergence, a condition where the price makes a higher high while the oscillator forms a lower high. This is typically interpreted as weakening momentum that could precede a retracement.
#XRP BEARISH DIVERGENCE! 🚨 pic.twitter.com/dNm4toX84F
— STEPH IS CRYPTO (@Steph_iscrypto) August 24, 2025
Chart Structure and Key Levels
On the weekly timeframe, XRP has been climbing since early 2025, with its price moving from around $0.55 in November 2024 to $3.39 in January 2025. Following that, the asset experienced another notable surge in July, reaching an all-time high of $3.65.
However, it has experienced some volatility recently and is now trading around $3. The current structure shows resistance forming near the $3 to $3.3 range, marked by repeated attempts to break higher but with diminishing follow-through. The dotted trendline across the weekly candles highlights these marginally higher highs.
At the same time, the MACD (Moving Average Convergence Divergence) indicator paints a different picture. Despite XRP’s higher price levels, the MACD histogram and signal lines are trending downward, creating the divergence Steph identified. The oscillator peaked earlier in 2025 and has since been unable to match that momentum, reflecting reduced strength behind the rallies.
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Potential Implications for XRP
Bearish divergence does not guarantee a reversal, but it often signals that upward momentum is weakening. Traders and investors typically monitor such signals to gauge the risk of corrections. In XRP’s case, the inability of momentum indicators to confirm new highs suggests that a pullback could be imminent unless buying pressure reasserts itself strongly.
If XRP fails to maintain its footing above $3, a retracement toward $2 would align with the divergence scenario. A deeper correction toward $1.5 could also be possible if broader market sentiment turns negative. On the other hand, a decisive breakout above the $3.3 resistance zone, accompanied by renewed strength in its oscillators, would invalidate the divergence and restore a more bullish outlook.
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 advised to conduct thorough 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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