As a seasoned crypto investor with years of market ups and downs under my belt, I’ve learned to read between the lines when it comes to technical analysis patterns. Today’s bullish divergence in XRP‘s RSI indicator has me intrigued, as it’s reminiscent of a similar pattern that preceded a significant price surge back in 2017.
Today, XRP’s price surged over 1.3%, pushing it back above the 50-cent-per-token threshold, a significant level both psychologically and for analysis. Notably, this increase in the value of the widely used cryptocurrency, currently ranked seventh by market capitalization, followed a bullish divergence in its RSI (Relative Strength Index) indicator.
In simpler terms, when an asset’s price hits a fresh low but its Relative Strength Index (RSI) forms a higher base, it suggests that the downward trend may be losing strength. This could mean that although the price is still decreasing, the selling pressure might be reducing, which could lead to a possible price increase or reversal.
It’s worth noting that a bullish divergence was detected on the four-hour chart of XRP price, which occurred when the price hit a low of $0.492. This event preceded an increase in the token’s value by approximately 4.5% over the following 24 hours, reaching its peak.
Should the selling pressure lessen and XRP continues its bullish trend, a significant challenge lies ahead: breaking through the resistance at approximately $0.515, which currently represents the position of the 50-day moving average.
If the divergence is merely short-term and today’s growth is as good as it gets for the bulls at this point, then the value of XRP might settle around 50 cents per token. Conversely, if the bears appear on the scene, the price of the token could attempt to retrace back towards its local minimum, approximately $0.49 per XRP.
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2024-11-04 19:49