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Key Takeaways:
- XRP is showing a bearish divergence on the weekly chart, signaling weakening momentum.
- Short-term price bounces may mislead traders amid a broader downward trend.
- Key support lies around $2.90; major resistance remains near $3.20.
XRP has posted some short-term price gains recently, but crypto analysts are cautioning against misplaced optimism. On the weekly chart, XRP is flashing a classic “bearish divergence” — where the price forms higher highs while the Relative Strength Index (RSI) prints lower highs. This weakening momentum indicator suggests that XRP’s recent rallies may be unsustainable.
This pattern mirrors a similar setup seen in late 2020 and early 2021, which preceded a 60% drop in XRP’s value over three months. The current signals hint that history could repeat unless major shifts occur in the broader crypto market.
Analyst: Don’t Be Fooled by Short-Term Bounces
Despite minor rallies, the overall price structure remains bearish. One crypto analyst noted that recent price action resembles XRP’s pattern in January 2025, just before a notable correction. Without breaking key resistance zones, these upward moves are likely temporary and could mislead traders into entering positions prematurely.
The analyst emphasized that short-term pops within a long-term downtrend can trap bullish traders, especially when the weekly and daily charts both signal sustained weakness.
Key XRP Support and Resistance Levels to Watch
XRP is currently testing a support zone between $2.90 and $3.00. If this zone fails, the next critical support range lies between $2.55 and $2.62 — levels that previously acted as strong resistance and may now serve as downside targets.
Also Read: Ripple Slams New Crypto Bill: Why ETH, SOL, and XRP Are at Risk
On the upside, XRP faces resistance near the $3.10–$3.20 range, where recent rejection occurred. A confirmed breakout above $3.20 could signal a trend shift, with $3.40 as the next resistance level to monitor.
Bearish Bias Persists for XRP
While short bursts of momentum may fuel temporary rallies, the broader technical picture remains bearish for XRP. Traders and investors should remain cautious and watch for key resistance breakouts before shifting to a bullish outlook.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
