XRP, the controversial token associated with blockchain company Ripple, slumped 8.3% to $0.42 amid a broader market downturn, according to data from CoinGecko.
The cryptocurrency's market capitalization now stands at $21.8 billion, while its 24-hour trading volume has reached $1.4 billion. XRP's price movement is in line with the performance of other major cryptocurrencies like Bitcoin, Ethereum, and BNB, which have also experienced declines over the past week.
Despite the recent slump, XRP investors might have a reason for cautious optimism. 100eyes Crypto Scanner, a popular crypto analysis platform, tweeted a "crypto alert" highlighting an "RSI bullish divergence" on the XRP-USDT one-hour chart.
Bullish divergence is a technical analysis term that refers to a situation when an asset's price makes a lower low, but its Relative Strength Index (RSI), a momentum indicator, makes a higher low. This suggests that selling pressure is weakening, and a potential trend reversal could be on the horizon.This potential reversal comes as XRP's price decline mirrors the broader cryptocurrency market.
Over the past 24 hours, Bitcoin's price fell 6.6%, Ethereum's slid 3.1%, and BNB's dropped 7.6%. The market-wide downturn has been attributed to a variety of factors, including network congestion issues that promoted Binance, the world's largest cryptocurrency trading platform, to temporarily halt withdrawals.
The identification of a bullish divergence in XRP's RSI could signal a potential upswing in the near future, but investors should approach this possibility with caution and carefully consider their risk tolerance before making any decisions.