The price of XRP, the cryptocurrency closely tied to Ripple, has plummeted by over 6% in the past 24 hours, according to data from CoinGecko. Despite the decline, there’s a glimmer of hope for XRP bulls.
Bullish Divergence Signals Potential Recovery
According to the 100eyes Crypto Scanner, the XRP/USDT trading pair has shown a bullish divergence on the hourly chart. This pattern suggests that XRP could experience a relief bounce in the near future. A bullish divergence typically occurs when the Relative Strength Index (RSI) increases even as the price drops. This signals a weakening bearish trend, providing a potential opportunity for a rebound.
Caution Amid Optimism
While the bullish divergence is promising, it’s important to interpret it alongside other major technical indicators. XRP’s price action remains volatile, and the token continues to lag as the worst performer among the top 10 cryptocurrencies following its recent 6% drop.
Broader Market Performance
Other major cryptocurrencies have also seen declines. Cardano (ADA) and Dogecoin (DOGE) have dropped by 5.9% and 5.7%, respectively. Meanwhile, Bitcoin (BTC), the largest cryptocurrency by market capitalization, has retreated by over 3% after nearing the highly anticipated $100,000 milestone during the holiday season.
XRP’s Journey and Future Catalysts
XRP recently enjoyed a brief rally driven by the launch of Ripple’s RLUSD stablecoin. However, this uptick wasn’t sufficient to sustain momentum. The token remains 36.3% below its all-time high from early 2018. While XRP came close to achieving a new peak in December, it ultimately fell short.
Looking ahead, several bullish catalysts could reignite XRP’s rally in 2025. These include the SEC’s shifting stance toward cryptocurrency and increasing excitement around a potential XRP-based ETF. These developments could provide the necessary momentum for XRP to reclaim its former glory.
Final Thoughts
While XRP’s recent price plunge may seem discouraging, the emergence of bullish divergence and future market catalysts offer a silver lining for investors. As the broader cryptocurrency market navigates volatility, XRP bulls may find reasons to remain optimistic about the token’s long-term potential.
