XRP has been navigating a period of heightened volatility, leaving traders searching for clues about potential reversals. Amid this extended downside pressure, subtle shifts in momentum and price structure are increasingly capturing attention. These technical signals often reveal more about near-term market dynamics than headline news or short-term sentiment swings.
This focus on deeper analysis was recently highlighted by ChartNerd, whose update on XRP’s daily chart examines a multi-week technical setup. By comparing price action with momentum indicators, ChartNerd identifies signals that could suggest exhaustion of selling pressure and the potential for a near-term relief bounce.
Understanding the Bullish Divergence
At the heart of the analysis is a maturing bullish divergence. XRP’s price has been forming lower lows, most recently approaching the $2.03 support region. Simultaneously, the Relative Strength Index (RSI) has been creating higher lows, holding around 34. This divergence between price and momentum is a classic indication that bearish pressure is weakening, even as price continues to decline.
$XRP Bullish Divergence Update:
1) LL Trendline Support Waiting ⏰️
2) RSI Touchpoint Near Complete 👍
3) Relief Bounce Loading 🎯 https://t.co/KW4B01oezC pic.twitter.com/fDjGfRPUrJ— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) December 17, 2025
Bullish divergence does not automatically guarantee a reversal. Instead, it reflects a growing imbalance between sellers and buyers, where the momentum of the downtrend is slowing and bears may be losing control. For traders, it represents a potential early signal of a corrective bounce rather than a confirmed trend change.
The Role of Trendline Support
A critical factor in the current setup is the lower-low trendline, which marks a key structural support on XRP’s daily chart. The price has been approaching this trendline, offering a potential touchpoint for buyers to enter or for sellers to hesitate. Respect for this support zone would reinforce the bullish divergence and increase the likelihood of a relief bounce.
Trendline support is particularly significant because it provides a clear visual marker for risk management. Holding above this level suggests that the bullish divergence remains valid, while a decisive break could indicate a continuation of the downtrend.
Candlestick Signals and Market Context
Recent candlestick patterns add further context to the setup. A hammer candle has appeared near the lower-low trendline, a formation often associated with rejection of lower prices and potential reversal. While a single candlestick cannot confirm a trend change, its alignment with both the divergence and trendline support strengthens the case for a near-term bounce.
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This combination of factors—divergence, trendline support, and reversal candlesticks—creates a confluence that traders often look for when anticipating relief rallies.
Invalidation Points to Watch
Despite these encouraging signals, the setup includes clear invalidation criteria. A break of RSI below 30 would suggest renewed bearish momentum, while a drop under $1.85 without a corrective bounce would weaken the support structure. Monitoring these levels allows traders to define risk and separate a potential rebound from continued downtrend activity.
What This Means for XRP Holders
The current configuration indicates that XRP may be nearing a critical juncture. If trendline support holds and momentum continues to stabilize, a short-term relief bounce could emerge, driven by dip-buying and short-covering. Conversely, failure to maintain support would delay any rebound and leave the market vulnerable to further declines.
For now, the bullish divergence highlights a market where selling pressure may be exhausting, signaling the possibility of a near-term upside reaction. Traders and investors should watch key support and momentum levels closely, as these will likely determine XRP’s path in the coming sessions.
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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