XRP forms a crucial bullish divergence on its weekly chart, prompting notable analyst Alex Cobb to project an upcoming historic move.
Cobb disclosed this in his latest XRP analysis amid XRP’s dull market performance. Despite the dull performance, data suggests that XRP has been registering higher lows on the weekly chart since mid-April. However, this has not necessarily translated to higher highs, as the bears have persistently resisted any price upswing.
Nonetheless, Cobb showed that XRP’s trend of higher lows on the 7-day timeframe contrasts the trend recorded by its relative strength index (RSI), a pivotal momentum oscillator. Notably, the RSI measures the speed and change of price movements to identify overbought or oversold conditions.
Tell me how #XRP isn’t cooking up a historical move pic.twitter.com/xf8sdBQBtq
— Cobb (@AlexCobb_) May 28, 2024
XRP Witnesses Buying Pressure
Being a momentum indicator, it typically moves in line with price action, sloping down whenever an asset records lower lows and pushing up when there are higher lows. However, the RSI on the XRP weekly chart has been dropping lower despite XRP recording higher lows. Traders call this phenomenon a hidden bullish divergence.
This pattern occurs when a crypto asset’s price records higher lows while its RSI witnesses lower lows. The divergence is caused by strong underlying buying pressure, indicating the potential continuation of an uptrend despite a temporary RSI decline.
Santiment data confirms these increased buys, indicating that wallets holding at least 1 billion XRP have procured 340 million tokens since March. The Crypto Basic further reported this week that XRP whales had accumulated 3.17 billion tokens over the last 16 months.
In addition, data sourced by Coinglass reveals that since April 6, exchanges have only recorded one day of positive netflows involving XRP. In other days, market participants have massively pulled their funds out of exchanges.
XRP Exchange Netflows | Coinglass
Hidden Bullish Divergence Could Lead to an Upsurge
This pattern further confirms the prevalent buying pressure, contributing to the lower highs and the ongoing hidden bullish divergence. Cobb’s chart shows that the last time XRP witnessed this hidden bullish divergence was from 2016 to 2017. Interestingly, the pattern led to the historic 2017 uptrend that culminated in the ATH of $3.31 in January 2018.
Cobb expects this trend to repeat, asserting that XRP is “cooking up” a historical price move. While Cobb failed to make any price projections, other market analysts have presented targets for when such a rally occurs. For instance, World of Charts expects XRP to reach a $5 price amid an imminent price upswing.
Meanwhile, others look to more ambitious price targets, with EGRAG setting a $66 goal on the back of a looming impulsive wave and CryptoBull predicting a spike to an audacious $154 price. Despite these lofty projections, XRP continues to battle at the $0.5 level, currently changing hands at $0.5183.
