The price of XRP witnessed a mild surge in recent hours. According to data from CoinMarketCap, the digital asset is trading at $0.539 at the time of press. The data also shows an 8% increase in the last seven days.
This upswing positions XRP as one of the leading performers within the cryptocurrency market over the past 24 hours. However, a technical indicator on the 60-minute chart presents a bearish divergence pattern.
Read Also: Analyst Predicts 65,000% XRP Rocket Rally to $356, Citing Three Bullish Signals
A crypto analyst “100eyes Crypto Scanner” identified a bearish divergence pattern on XRP’s 60-minute chart. This pattern emerges when the price of an asset reaches a new high, while a corresponding technical indicator, in this case, the Relative Strength Index (RSI), registers a lower high.
The RSI is a tool to gauge whether an asset is overbought or oversold. In the context of a bearish divergence, the lower high on the RSI suggests that the upward momentum in price might be weakening.
Despite the potential bearish signal, XRP has managed to outperform Bitcoin (BTC) significantly. Over the same 24-hour period, Bitcoin has dipped by over 1.5%. This translates to a roughly 5% gain for XRP against Bitcoin.
The lack of correlation between the two major cryptocurrencies is noteworthy, especially considering the absence of any recent developments in the ongoing SEC v. Ripple lawsuit. XRP has endured nine consecutive months of negative returns, and it remains to be seen if it can sustain its current momentum against Bitcoin and finally break this trend in May.
Read Also: Analyst Predicts 65,000% XRP Rocket Rally to $356, Citing Three Bullish Signals
Popular cryptocurrency trader Mikybull has offered a contrasting perspective on XRP’s recent price action. Mikybull highlights the possibility of an imminent breakout for XRP, based on the potential for the RSI to overcome its current resistance level. This observation suggests that Mikybull believes the bearish divergence might not materialize, and XRP could experience a more sustained price increase.
The coming days and weeks will be crucial for XRP. The cryptocurrency faces the challenge of potentially reversing its nine-month decline while navigating a technical indicator hinting at a bearish turn. Analyst predictions suggest a possible breakout, but only time will tell if XRP can defy the bearish divergence and establish a more positive price trajectory.
Follow us on Twitter, Facebook, Telegram, and Google News
While analysts suggest that a Dogecoin price of $10 and a Shiba Inu price target…
News of SEC Chair Gary Gensler's potential resignation has sent shockwaves through the cryptocurrency industry.…
Ripple's RLUSD stablecoin has entered beta testing, with a broader release anticipated upon regulatory clearance.…
The Dogecoin price is again making waves, with analysts predicting a new all-time high (ATH)…
Experienced crypto analyst EGRAG has projected that XRP could reach remarkable price levels if Bitcoin…
In the ongoing bull market, memecoins have provided the best opportunities, and to keep its…