The cryptocurrency market is still experiencing disarray due to broad drops, but the XRP price continues to capture analysts’ interest as they hold onto a positive outlook. One analyst highlighted that XRP has recently formed a rare and bullish setup, with several chart indications aligning to support upward movement.
XRP Price Develops Rare Multi-Layered Bullish Setup
Crypto market analyst Bobby A states that XRP is in a unique market position, consolidating above crucial historical levels while gearing up for a potential move that could lead to new all-time highs. He mentioned that various indicators are converging in support of a potential uptrend.
Related Reading
In a chart shared on X social media, Bobby illustrated that XRP’s market capitalization has remained above its 2018 peak for over 300 days, showcasing resilience during the recent downturn. This prolonged consolidation above a significant resistance-turned-support level indicates a substantial build-up of energy before the next upward leg. He believes this base formation marks a possible explosive move upward, with upcoming market cap targets set at $173 billion and a peak around $727 billion.
On the price front, Bobby indicates that XRP has been forming a multi-month bullish flag pattern. He identifies key support zones as “Base Camp 1” around $1.9 and “Base Camp 2” at $2.89—both zones have been robustly defended. Additionally, he noted that the monthly Relative Strength Index (RSI) is also positioning for a potential push towards overbought levels, often preceding a significant upward move. According to his forecasts, XRP’s take profit zones are situated between $5 and $13, designating levels for fresh all-time highs.
Bobby’s insights reveal that XRP’s indicators are “operating optimally,” with momentum across higher timeframes aligning for a potentially strong upward surge. He additionally noted that Bitcoin Dominance (BTC.D), now sitting at 58.7%, is expected to pull back to the mid-to-low 40% range soon. Such a shift would allow altcoins like XRP to capture a greater market share, heightening the chances of a bullish breakout. The analyst termed this rare alignment as a once-in-a-decade opportunity.
Bearish Divergence Triggers Short-Term XRP Sell-Off
While XRP seems to be resisting the current market slump, not all analysts are feeling bullish in the short term. Crypto expert JD has warned about a Bearish Divergence developing on XRP’s weekly chart—a signal that has unfolded as anticipated.
The chart indicates that while XRP’s price has made higher highs, the RSI indicator has shown lower highs, resulting in a classic Bearish Divergence pattern. This divergence has already contributed to a 27% correction from the $3.37 take profit level identified by JD. He noted that many market participants are now questioning why XRP is under pressure despite broader optimism.
Related Reading
JD believes the Bearish Divergence served as a significant warning signal, and those who overlooked it are now experiencing its consequences. He warns that, although XRP might still evade a deeper plunge into the “grey box” supply zone, its short-term outlook remains bearish until momentum resets.
Featured image from Unsplash, chart from TradingView
