XRP is facing an overall downward trend despite short-term price increases.
Although XRP has slight price rebounds, the primary trend on weekly and daily charts still contains significant downward pressure. Investors should be cautious about short-term fluctuations and focus on important support and resistance levels to assess the trend.
- XRP is confirming a price decline divergence on the weekly chart with a weakening RSI signal.
- Recent price increases may only be technical rebounds within a long-term downward trend.
- Support zones from $2.55 to $3 and resistance around $3.20 and $3.40 are points to watch.
What signals is XRP showing on the weekly chart?
XRP is currently confirming a "price decline divergence" on the weekly graph where price creates a higher dip but the RSI index creates a lower dip. This is a sign that upward momentum is weakening, often preceding a potential significant price drop.
This divergence previously appeared in late 2020 and early 2021, leading to XRP dropping over 60% within approximately three months. This signal has high technical analysis specificity and is usually carefully considered by serious investors.
How can XRP's short-term fluctuations be explained?
Although XRP has temporary price increases, analysts warn these are only technical recoveries within an existing downward trend. Weekly and daily charts still indicate larger selling pressure and price structure remains inclined towards decline.
This is similar to XRP's development in January this year, just before XRP continued to drop significantly. If the market has no unexpected major movements, the likelihood of continued downward trend is very high.
The RSI divergence signal shows increasing downward momentum, warning investors not to be too optimistic about technical rebounds.
Cryptocurrency Analyst, 2024
What are the current important support and resistance levels for XRP?
XRP is currently testing the critical support zone from $2.90 to $3. If the price continues to decline, the next support zone will fall between $2.55 and $2.62. These are levels that were previously resistance and may now stop the decline.
On the opposite side, the nearest resistance zone is currently between $3.10 and $3.20. If successfully breaking through this area, the next resistance level will be $3.40 – a notable barrier in establishing a sustainable upward trend.
Frequently Asked Questions
Does XRP currently have an upward or downward market trend?
XRP is in an overall downward trend with strong pressure on weekly and daily charts, despite short-term price increases.
What is RSI decline divergence and how does it affect XRP?
RSI decline divergence is a psychological signal showing weakening price increase momentum, typically leading to correction or significant price drop.
What important price levels should investors watch for XRP?
Support zones from $2.55 to $3 and resistance from $3.10 to $3.40 are points to note in assessing the next trend.
Can XRP recover if it breaks through the $3.20 resistance zone?
If XRP successfully breaks through the $3.20 zone, price increase prospects will be more favorable, but other technical signals should be observed.
How can investors avoid risks when trading XRP during this period?
Investors should manage risks strictly, not rely on short-term rebounds, and closely monitor important support and resistance levels before making decisions.
