XRP Shows Bullish Divergence as Price Tests Key 20 EMA at $2.13

⬤ XRP is trying to find its footing after a rough stretch, and new technical patterns hint at a potential turnaround. The token is showing a bullish divergence right now – price keeps making lower lows while the RSI is actually climbing with higher lows. This setup often signals that selling pressure is weakening, but the real test comes at the daily 20 EMA, currently sitting between $2.13 and $2.14.

⬤ Looking at the chart, there’s been a clear downtrend since late summer with XRP stuck in a descending channel. What’s interesting is that while price has been dropping to new lows, the RSI has been quietly rising from its October bottom. That’s the divergence everyone’s watching. But here’s the catch – XRP is still trading below that 20 EMA line. Until it breaks above and holds, the bearish structure is still calling the shots.

“The altcoin is currently showing a bullish divergence, where price continues to form lower lows while the RSI creates higher lows.”

⬤ If XRP can’t push past the 20 EMA and close above it, traders will be eyeing that descending trendline that’s been guiding price for months. That support line has been holding the bearish channel together. A bounce off it could keep the divergence play alive, but a breakdown would kill the recovery hopes and likely trigger more selling.

⬤ What happens at this 20 EMA level matters beyond just XRP. How the token reacts here could set the tone for other major altcoins. A clean breakout would be the first real sign of strength in weeks and might bring buyers back to the table. But another rejection would just confirm that caution is still the name of the game in this choppy market.

My Take:

The divergence looks promising, but XRP needs to prove itself at $2.13. Without a convincing break above the 20 EMA, this is just another lower high waiting to happen. The real money waits for confirmation, not hope.

Source: ChartNerd