XRP Is Not Truly Stagnant: The Technical Signals Experts Are Ignoring

With XRP currently trading at $2.04 and down 2.34% in the last 24 hours, many market observers have already written the verdict: the situation is desperate. However, a closer look at the charts reveals a completely different story. While sentiment remains pessimistic and participation has contracted, technical data suggest that we are approaching a critical turning point. The detailed analysis shows that what appears to be weakness could actually be the prelude to significant price movements.

The Compression Structure: When Stagnation Precedes Explosion

On a weekly scale, XRP is within a consolidation range that is progressively narrowing. This zone is bounded by a descending resistance line and rising supports, creating a structure that cannot last indefinitely. The most interesting element is that the price is consolidating above the crucial support during a period of maximum fear and very little interest from small investors.

From a probabilistic standpoint, such a configuration historically favors a bullish reactivation rather than further decline. Although no one can guarantee the outcome, the premises are decidedly favorable for those who maintain confidence in the project.

RSI Divergence: A Frequently Overlooked Warning Sign

Looking at the daily chart, a rare technical detail emerges: the Relative Strength Index is creating higher lows while XRP’s price touches lower lows. This bullish divergence is almost unprecedented on the same timeframe.

The last time a similar setup occurred was at the bottom of the 2022 bear market. After that technical signal, XRP stabilized and subsequently recorded significant gains. Such divergence typically anticipates a weakening of selling pressure and a gradual rebuilding of buyer interest, even if the price does not immediately reflect it.

XRP vs Bitcoin: The Break of Multi-Year Resistance

The comparative analysis between XRP and Bitcoin adds an additional layer of complexity. A resistance level that had held since 2017, repelling prices for years, was finally broken at the beginning of the year. It is currently being retested as a potential support. If this level holds, XRP could continue gaining ground against Bitcoin, suggesting that its movements are not entirely subordinate to Bitcoin’s direction.

Risk Factors That Cannot Be Ignored

Not everything is positive in the macroeconomic picture. XRP continues to trade below its 50-week simple moving average, a condition historically associated with further declines. Additionally, the monetary policies of the Bank of Japan, including ETF divestments and potential rate hikes, represent traditional headwinds for high-risk assets.

However, a moderating factor is that markets have already partially priced in these negative scenarios, reducing the likelihood of further crashes after such announcements.

The Verdict: Advanced Consolidation, Not Structural Collapse

Overall, the technical evidence suggests that XRP is likely approaching a market bottom rather than a top. Although bearish scenarios remain theoretically possible, the prevalence of constructive technical signals indicates an advanced phase of consolidation. The weekly decline of 4.36% should not cause panic: these price compressions rarely last without decisive results. The next movements will probably be critical in determining the next direction.