XRP’s performance over the past few weeks has raised eyebrows. Despite bullish expectations, the digital asset dropped below $0.5 and has failed to regain that level. Despite this, Blockchain Backer (@BCBacker), a prominent crypto analyst on X, recently showed XRP’s strength.
Blockchain Backer showed a TOTAL (A chart showing the market cap of the top 125 cryptocurrencies) vs. XRP/USD. The TOTAL/XRPUSD pair reveals a significant bearish divergence on the weekly timeframe.
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This divergence occurs when the price of XRP creates a higher high while the TOTAL/XRPUSD pair forms a lower high. This inconsistency can be interpreted as a sign of weakening bullish momentum, potentially indicating a price reversal for XRPUSD in the coming weeks.
The Moving Average Convergence Divergence (MACD) indicator is another noteworthy technical analysis tool employed to assess XRP’s price movement. According to Blockchain Backer, the MACD on XRP’s weekly chart has reached historical extremes, often a precursor to a trend reversal.
Intriguingly, similar occurrences of a bearish divergence on the TOTAL/XRPUSD pair and a MACD flip at historical extremes were observed in both 2017 and 2021. In 2017, XRP began the 65,000% rally that sent it to its all-time high of $3.84 in January 2018. In 2021, XRP surged to $1.96, a level it has failed to regain.
The historical context presented by Blockchain Backer is intriguing. If past performance is any indication, the current technical setup could lead to another period of XRP outperforming the broader market. However, it is crucial to acknowledge that past performance does not guarantee future results. Market dynamics can evolve considerably, and factors beyond technical indicators can significantly influence price movements.
Beyond technical analysis, fundamental factors specific to XRP and the Ripple network also warrant consideration. The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to impact XRP’s prospects.
Read Also: Analyst Identifies XRP Bullish Potential with Monthly MACD Crossover. Here’s the Chart
A positive resolution could inject confidence into the market and propel XRP prices upward. Additionally, continued adoption and integration of Ripple technology for local and international financial services could drive demand for XRP.
The confluence of a bearish divergence, a MACD flip at historical extremes, and other factors like Ripple’s recent massive partnership with Apple, and potential partnerships with banks around the globe have bolstered the bullish sentiment around XRP.
Disclaimer: 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 represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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