Main navigation

XRP Generates Bullish Divergence as Momentum Stalls

Mon, 10/17/2022 - 06:29
article image
Alex Dovbnya
The XRP token has seemingly confirmed a bullish divergence, setting the stage for possible recovery
XRP Generates Bullish Divergence as Momentum Stalls
Cover image via
Read U.TODAY on
Google News

The XRP token is seemingly confirming a bullish divergence on its hourly chart, according to the 100eyes Crypto Scanner account.

Traders can spot divergencies based on the relative strength index (RSI), a momentum indicator used in technical analysis. It is displayed on an oscillator, which ranges from 0 to 100.

Image by @100eyesCrypto

An asset is considered to be oversold if the RSI drops below 30. At the same time, overbought conditions occur if there is an RSI reading above 70.

The indicator is useful for those who want to determine the right time to buy or sell a certain asset. They can do this by monitoring divergences that occur between the momentum and the price.

Michael Saylor Pitches Bitcoin to Ray Dalio

A bullish divergence can be spotted when the RSI makes a higher low in spite of bearish price action. This suggests possible bullish momentum that can be interpreted as a buying opportunity by some traders.

The XRP token is down 1.66% over the last 24 hours, and the Ripple-affiliated cryptocurrency is now on track to record its third consecutive day in the red.    

The token is down roughly 13% over the last week even. On Oct. 14, it managed to soar roughly 7% after the U.S. stock market managed to mount a stunning comeback. However, this momentum quickly faded.

Concerns about the U.S. Federal Reserve’s hawkish policy remain front and center for market participants.

The token is down 86.22% from its record peak that was recorded all the way back in 2018.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at