The post XRP Price Faces Bearish Divergence: Could a 25% Correction Be on the Horizon? appeared on BitcoinEthereumNews.com.

XRP’s price faces critical technical challenges as bearish divergence signals a potential correction, drawing attention from traders and analysts alike. After hitting a multimonth low, XRP’s recent volatility has put its bullish momentum at risk, complicating its outlook amid fluctuating market conditions. A COINOTAG analysis highlights that XRP’s relative strength index (RSI) is signaling weakening buying pressure, suggesting further downside risk. XRP’s price may face a 23% correction amid bearish signals on key charts, demanding attention from crypto traders and investors. XRP Faces Bearish Divergence on Key Charts, Raising Alarm XRP’s impressive surge over the past three months has captivated the crypto market, soaring from $0.50 to an all-time high of $3.40—a staggering 580% increase. However, the altcoin’s recent price action reveals concerning technical signals, particularly a bearish divergence developing on both the daily and weekly charts. The fluctuations in liquidity have been exacerbated by external factors, including a recent flash crash tied to a non-crypto political event. This scenario suggests that buying interest might be waning, culminating in an erosion of bullish momentum for XRP. As depicted in the charts, XRP has managed to establish higher highs in price, yet its relative strength index (RSI) has charted lower highs—a classic indication of diminishing buyer strength. Both the daily and weekly RSI trends are falling from overbought conditions, hinting at a potential market reversal. Should these bearish divergences materialize, XRP faces the risk of retreating below the critical threshold of $2, implying a drop of approximately 23% from its current value, as new support levels develop at lower price points. Analyzing XRP’s Current Market Position and Future Trends It is essential to contextualize XRP’s current market position. Despite its prior highs, the altcoin has been met with increased volatility, often characteristic of the broader cryptocurrency landscape. According to recent data,…

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Filed under: News - @ February 4, 2025 9:27 pm