XRP News Today: XRP Trapped in $2.90-$3.40 Range as Bearish Divergence Sparks Sell-Off Fears

XRP remains trapped in a tight trading range between $2.90 and $3.40, with analysts highlighting a concerning bearish divergence on the weekly chart [1]. While the price continues to make higher highs, the relative strength index (RSI) shows weakening momentum, with lower highs in the oscillator signaling a potential shift in sentiment. This divergence is considered a classical warning sign that bullish momentum may be running out of steam, raising concerns among traders and observers.

This scenario is not unfamiliar in XRP’s history. A similar bearish divergence occurred in late 2020 and was followed by a significant pullback, with the asset giving up much of its prior gains. Although past performance does not guarantee future results, the pattern has sparked caution among market analysts. At present, XRP is consolidating around $3.00, with resistance forming near $3.13–$3.17 and a key breakout level expected above $3.40 [1].

Market commentator Justcryptopays noted that a decisive close above $3.17 could trigger a new wave of buying interest, potentially propelling XRP toward $3.40 [1]. On the other hand, a breakdown below $2.90 could initiate a more prolonged correction, with price potentially retreating toward $2.75 or even $2.55. EGRAG CRYPTO added that a full-body 4H candle close below $2.90 would confirm a 5-wave bearish structure, further intensifying the downside risk toward $2.65 [1].

DavidTheBuilder emphasized the importance of short-term consolidation between $3.00–$3.20, noting that a clear breakout is needed to determine the next directional move. A move above $3.40 would signal continued bullish momentum, whereas a loss of the $2.90 level could accelerate a bearish trend [1].

Currently, XRP faces a critical juncture, with the technical setup suggesting a precarious balance between potential upside and downside risks. Traders are advised to remain cautious as the asset teeters on a knife’s edge.

Source: [1] XRP on a Knife-Edge: Bearish Divergence Emerges Despite Price Making Higher Highs (https://coinpaper.com/10567/xrp-on-a-knife-edge-bearish-divergence-emerges-despite-price-making-higher-highs)