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Today, the price of XRP rose more than 1.3%, once again trading above the 50-cent-per-token mark, which is considered an important psychological and analytical level. Interestingly, the rise in the price of the popular cryptocurrency, which ranks seventh in capitalization, was preceded by a bullish divergence in the RSI indicator.
This technical analysis pattern occurs when the price of an asset reaches a new low and the Relative Strength Index forms a higher low, signaling that the downward momentum is weakening. This indicates that despite the continued decline in price, selling pressure is easing, potentially paving the way for a price reversal.
Vladislav SopovIndeed, the bullish divergence that appears on the four-hour chart of the XRP price occurred as the XRP price bottomed out at $0.492 and preceded the token's rise over the next 24 hours by nearly 4.5% at its peak.
If the selling pressure does indeed ease and the XRP price remains bullish, the next important test will be to overcome resistance at $0.515, where the 50-day moving average now resides.
Tomiwabold OlajideOn the other hand, if the divergence was temporary, and the growth we saw today is all the bulls can expect for now, then the price of XRP will either stabilize around 50 cents per token. Or, if the bears show up, the price of the token may try to revisit the local minimum in the area of $0.49 per XRP.
Yuri Molchan
Tomiwabold Olajide
U.Today Editorial Team
Vladislav Sopov
Dan Burgin