- XRP has broken past key resistance levels but is now approaching a historical zone from early 2018.
- Despite price gains, the RSI lags behind, suggesting reduced bullish strength and possible exhaustion.
- While long-term bullish calls exist, current technicals show XRP remains in a tight short-term range.
XRP has posted a strong breakout in recent sessions, reaching $3.55 after rising over 24% on the weekly chart. The digital asset has now approached a resistance area last seen in early 2018. According to current price data, the 24-hour range shows a low of $2.86 and a high of $3.62. The current support stands at $3.43, while the immediate resistance remains near $3.58.
This move has occurred alongside increased buying momentum, pushing the price above major trend levels on the long-term chart. However, technical indicators suggest the rally is not without cautionary signs. As the market reacts to the recent upside, traders are watching specific patterns and metrics for additional confirmation or pullbacks.
Bearish RSI Divergence Emerges Despite Breakout
Although the price has moved aggressively, the weekly RSI has not followed with equal strength. The chart has developed a conspicuous bearish divergence. This deviation indicates that the move had less momentum in comparison to the earlier rallies. The RSI value remains below prior peaks, indicating reduced buying pressure relative to earlier bullish phases.
The chart also reveals a possible three-thrust pattern, a formation that may hint at exhaustion in some cases. While this does not negate further upside, it presents a technical caution to monitor closely. The divergence was also present during previous cycle tops, which makes the current pattern relevant for short-term decision-making.
XRP Faces Short-Term Range Despite $10K Speculation
According to Jake Claver, Managing Director of Digital Ascension Group, has reportedly suggested that XRP could eventually reach $10,000. While this projection has gained attention, the current chart setup does not support such a move in the near term. Moreover, there are other signals that the current uptrend may need to be stabilized.
Some technical analysts cite the inability to evaluate the real value of XRP on charts alone, despite the substantial gains. The paradigm of historical practices and conventional financial metrics might not be applicable anymore particularly when the use of XRP scales.
Until then, traders are focusing on immediate support at $3.43 and resistance at $3.58 for actionable levels. Despite a bullish XRP-Bitcoin chart and bold $10 prediction, technical signals suggest XRP may face hurdles before reaching such lofty targets.
