Ripple’s native token, XRP, is trading in a narrow range near key support, with price action compressing and volume remaining steady. With the asset holding close to $1.87 at press time, traders are watching for a move that may decide short-term direction. This setup often precedes a break in either direction.

Market Structure Points to Tension

According to BitGuru, XRP is following a common cycle: an initial rally, followed by a long consolidation, and then a gradual downtrend. The recent price behavior fits this description. The strong move in July gave way to sideways action through October, then a steady decline. Since November, XRP has continued to drift lower, but without strong momentum.

$XRP shows a classic cycle: a strong impulsive rally, followed by long consolidation then a controlled downtrend. $XRP price is now compressing near key support after trend exhaustion this is typically where smart money starts positioning early before the next directional move. pic.twitter.com/tjywVoXFKZ

— BitGuru (@bitgu_ru) December 30, 2025

Notably, the current pattern suggests pressure is building. A breakout could lead to resistance levels around $2 to $3, while a breakdown may push the price lower toward $1.5. Traders are watching this area as the range tightens and volume remains active.

In addition, ChartNerd has pointed to a developing bullish divergence. While the price has been forming lower lows, the Relative Strength Index (RSI) is moving in the opposite direction, creating higher lows. This setup may suggest that selling is losing strength, though the price has not yet responded.

RSI is also climbing from oversold levels. This may signal that buyers are starting to engage, even as the price remains flat. For now, the $1.86 zone remains the key level. A shift in structure could begin if current support continues to hold.

As previously reported, XRP has also now over 2 months under the 50-week simple moving average, a condition similar to one that preceded a past 850% rally.

Technical Zones for Traders

CryptoWZRD described XRP’s daily candles as indecisive. The $2 level is viewed as major resistance. A close above that area may open the way to $2.75.

“My expectations will remain rational ahead of the yearly transition,” the analyst wrote.

In the intraday view, the chart traded in a narrow range. A retest of the $1.82 level with a bullish reversal could create upside momentum, while a retest of the $1.98 resistance with a rejection may offer a short trade setup.

Meanwhile, CW reported that XRP held on exchanges has dropped to 1.6 billion tokens. This is the lowest level in seven years, down from 3.76 billion in October. The drop in supply may reflect reduced interest in selling or a shift toward longer-term storage.

The post The ‘Bullish Divergence’ Signal: Why XRP Could Be Ready to Rally appeared first on CryptoPotato.

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Filed under: Bitcoin - @ December 31, 2025 3:19 pm