Major trend reversals rarely start with explosive candles. They usually emerge when momentum shifts quietly while the price still looks weak. That phase often marks the turning point between prolonged consolidation and renewed expansion. XRP now appears to be entering that zone where technical structure begins to challenge prevailing bearish assumptions.
In a recent X post, STEPH IS CRYPTO highlighted a developing signal on XRP’s daily chart that points to improving momentum beneath the surface. His analysis focuses on a classic divergence pattern that traders often watch closely at potential market inflection points.
What the Daily XRP Chart Shows
XRP recently declined toward the $1.92 level after weeks of sideways-to-lower price action. While price printed lower lows, the Relative Strength Index told a different story. Since July 2025, the RSI has consistently formed higher lows on the daily timeframe.
This bullish divergence will send $XRP to $5 before you know it! pic.twitter.com/tEkLTIltvl
— STEPH IS CRYPTO (@Steph_iscrypto) January 24, 2026
This configuration creates a bullish RSI divergence. In technical analysis, this pattern suggests that selling pressure weakens even as the price continues to drift lower. Steph emphasized that this divergence signals diminishing downside momentum rather than immediate upside, a key distinction for proper interpretation.
Why Bullish RSI Divergence Carries Weight
Momentum often leads the price to turning points. When RSI trends higher while price trends lower, sellers must exert more effort to achieve smaller price moves. Buyers begin absorbing supply more efficiently, setting the stage for a potential reversal.
On higher timeframes like the daily chart, bullish divergences tend to carry more significance. They frequently precede strong relief rallies or full trend reversals, particularly after extended consolidation phases. This dynamic explains why traders treat such setups as early warnings rather than entry signals.
How the $5 Scenario Fits the Structure
Steph’s $5 outlook reflects a broader structural recovery rather than a single technical signal. If XRP confirms the divergence by breaking above short-term resistance, the price could rapidly revisit prior high-volume zones. Those areas often act as acceleration points once momentum shifts decisively.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
A sustained move higher would also realign XRP with broader market strength, especially if liquidity rotates back into large-cap altcoins. In that environment, upside targets expand quickly as sidelined capital re-enters the market.
What Still Needs Confirmation
Despite improving momentum, the price must validate the setup. XRP needs to hold above recent support and reclaim key resistance levels to confirm trend reversal. Without confirmation, divergences can persist without resolution.
However, the risk profile has shifted. Downside momentum has weakened, and buyers now hold a structural advantage.
What This Means for XRP Traders
This bullish divergence does not guarantee an immediate rally, but it changes the technical narrative. XRP no longer trades purely on weakness. Momentum now favors accumulation, and if price follows, a move toward higher targets, including $5, becomes increasingly realistic.
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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