XRP is showing a crucial bullish divergence on its weekly chart, prompting analyst Alex Cobb to predict a historic move. Cobb shared this insight in his latest analysis, despite XRP’s recent market stagnation. Notably, since mid-April, XRP has been registering higher lows on the weekly chart. However, bears have consistently thwarted any price upswing, preventing higher highs.
Interestingly, Cobb highlighted that XRP’s trend of higher lows on the 7-day timeframe contrasts with its relative strength index (RSI) trend. The RSI, a key momentum oscillator, measures the speed and change of price movements to identify overbought or oversold conditions. Typically, the RSI moves in line with price action, decreasing with lower lows and increasing with higher lows. However, XRP’s RSI has been dropping despite its higher lows, signaling a hidden bullish divergence.
Buying Pressure And Market Behavior
This hidden bullish divergence, where a crypto asset’s price records higher lows while its RSI records lower lows, indicates strong underlying buying pressure. This suggests a potential uptrend continuation despite the temporary RSI decline. Santiment data supports this, revealing that wallets holding at least 1 billion XRP have acquired 340 million tokens since March. Moreover, XRP whales have accumulated 3.17 billion tokens over the past 16 months.
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Data from Coinglass shows that since April 6, exchanges have recorded only one day of positive netflows involving XRP. On all other days, market participants have been withdrawing their funds from exchanges, further highlighting the buying pressure. This pattern contributes to the ongoing hidden bullish divergence, which Cobb believes could lead to a significant price upsurge.
Historical Comparisons And Future Projections
Cobb noted that the last time XRP experienced this hidden bullish divergence was between 2016 and 2017. This pattern led to the historic 2017 uptrend, culminating in an all-time high (ATH) of $3.31 in January 2018. Cobb expects this trend to repeat, suggesting that XRP is “cooking up” a historic price move.
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While Cobb did not specify price projections, other analysts have set ambitious targets. For instance, World of Charts expects XRP to reach $5 during the upcoming rally, while EGRAG and CryptoBull predict spikes to $66 and $154, respectively. Currently, XRP continues to battle at the $0.5 level, trading at $0.5183.
XRP’s current market dynamics, combined with the hidden bullish divergence and strong buying pressure, indicate a potential historic move. As the market anticipates this uptrend, analysts remain optimistic about XRP’s future performance.
