A recent analysis by Cobb (@AlexCobb_) has drawn the attention of market watchers to XRP, as the digital asset might be on the cusp of a massive rally. In his recent analysis, Cobb revealed a hidden bullish divergence, stating that XRP is cooking up a historical move, despite the cryptocurrency’s lackluster recent performance.
While XRP has established a series of higher lows on the weekly chart since mid-April, bullish momentum hasn’t translated into higher highs due to persistent bearish pressure. However, a contrasting trend line emerges when examining the Relative Strength Index (RSI), a key momentum indicator used to gauge overbought or oversold conditions.
Read Also: Market Strategist Spots XRP Hidden Bull Divergence, Predicts 36,000% Rally to $200
The RSI, which typically mirrors price movements, would be expected to decline alongside lower lows in price. However, XRP’s RSI on the weekly chart exhibits a downward trajectory. XRP recently reached its lowest RSI in history, and despite the higher price lows, it is forming a hidden bullish divergence.
This technical pattern signifies a potential reversal in the downtrend. It suggests that underlying buying pressure is building even during periods of price weakness. This hidden bullish divergence is often interpreted as a sign of an impending uptrend.
XRP’s Next Bull Run
On-chain data from Santiment supports the theory of an impending rally. This data indicates that wallets holding at least 1 billion XRP have accumulated significant tokens, purchasing roughly 340 million XRP since March, suggesting that a price surge could be on the horizon.
Interestingly, data from Coinglass reveals a trend of XRP withdrawals from exchanges since early April. With only one day recording positive net flows, this suggests that investors are moving their XRP holdings off exchanges, potentially in anticipation of a price rise. This ongoing withdrawal trend further reinforces the notion of significant buying pressure behind XRP.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: More Lows Before XRP Rally to $5? Analyst Answers With “Hidden Bullish Divergence” Chart
The last time XRP exhibited a similar hidden bullish divergence was during the 2016-2017 bull cycle. Notably, this pattern preceded the historic 2017 bull run that propelled XRP to its all-time high of $3.84 in January 2018.
Drawing a parallel between the current situation and the 2016-2017 period, analyst Cobb believes a similar move is coming. XRP is trading at $0.5173, but the analyst did not provide a specific target.
However, other analysts have delved into more specific targets. EGRAG CRYPTO (@egragcrypto), a Prominent crypto analyst recently showed two breakout scenarios that could send XRP as high as $7.5.
Follow us on Twitter, Facebook, Telegram, and Google News
