XRP: Stable Prices Could Mean a Bullish Divergence Is Developing

XRP has been trading in a sideways fashion for the last three weeks. The price fluctuates between $0.3 and $0.4, while some technical indicators are indicating a possible bullish divergence.

Technical Analysis is a method of analyzing the price and volume of a security.

Grizzly provides a detailed explanation of the technical analysis technique in its blog post, "Technical Analysis."

The financial news outlet The Daily Chart 

When the MACD indicator forms a positive divergence with the price, it indicates that in previous drawdowns, bearish momentum decreased in the short term. A bullish divergence can be defined as intervals when the price moves down, but the indicator trends towards the upside.

When the index enters the bullish zone (above the baseline), it is often followed by a surge in buying. At present, despite divergence (yellow rectangle), this indicator is still in bearish territory. A relief rally could be expected if it breaks above the baseline.

Key Support Levels: $0.30, $0.24

Moving averages:

At the time of writing, the price of MA20 was $0.33, while that of MA50 was $0.37, and that of MA100 was $0.52

XRP/BTC Price Chart

XRP still finds it difficult to break through the resistance zone formed by the intersection of the descending line (in yellow) and the daily MA200 (in white). The area is between 1700 and 1800 sats. Since August 2021, Bitcoin has not managed to cross this resistance line against XRP. If buyers push above, it becomes easier for them to reach higher levels. Also, new buyers could be convinced that price has enough momentum to move further upwards, which could accelerate the upwards trend.

Support levels: 1500 Sats and 1250 Sats Resistance levels: 1700 Sats and 1800 Sats