XRP Faces Bearish Divergence: Bluntz Warns of Potential Downtrend

Crypto strategist Bluntz, renowned for accurately predicting the Bitcoin (BTC) and Solana (SOL) corrections earlier this year, has now turned his attention to XRP. In a recent tweet to his 318,000 followers, Bluntz warned that the XRP/BTC pair is flashing a bearish divergence on the weekly chart, suggesting a potential loss of bullish momentum and a possible downtrend.

Bluntz also noted that XRP appears to be in the midst of an ABC correction against the US dollar. He believes that XRP may have experienced a complacent shoulder B wave and advises against fading the weekly bearish divergence, as seen in BTC and SOL's recent corrections.

Bluntz's analysis is based on the Elliott Wave theory, which posits that an asset typically undergoes an ABC pullback after completing a five-wave rally. According to his chart, Bluntz predicts that XRP could fall to the $1 area to complete the ABC correction. At the time of writing, XRP is trading at $2.46.

In January, Bluntz accurately called the potential market top for Bitcoin when it was trading above $100,000. He later updated his outlook to warn of a bearish divergence on the monthly timeframe for BTC. Last month, he also identified SOL as looking weak after losing the $220 level while showing a bearish divergence on the two-week chart.

At the time of writing, BTC is trading at $87,421, and SOL is worth $144.78. While the long-term outlook for Bitcoin remains bullish, traders should remain cautious due to the ongoing volatility in the crypto market.