XRP's Hidden Bullish Divergence Signals Potential Rally

XRP's recent price movements have sparked interest among crypto analysts, with some predicting a potential continuation rally despite the ongoing price crash. Javon Marks, a crypto analyst, believes that a "hidden bullish divergence" on XRP's daily candlestick chart signals the possibility of a strong rally. This bullish divergence, characterized by higher lows and higher highs on the XRP price chart and lower lows and lower highs on the RSI indicator, suggests that the selling pressure could be slowing down.

XRP's price action has faced consistent downward pressure over the past week, with the decline intensifying in the past 24 hours. At the time of writing, XRP has dropped by approximately 13% in the past 24 hours and is on the verge of retesting a crucial support level at $2. However, an interesting analysis shows that this decline is part of a hidden bull divergence pattern, which is known to be bullish and suggests that the selling pressure shown by the RSI could be slowing down.

Javon Marks emphasized that XRP is preparing for a "massive continuation wave up" and that the necessary technical confirmations for such a move are already in place. This assertion builds upon his earlier analysis, where he described the hidden bullish divergence as forming in a "textbook fashion." According to Marks' projection, an upside move would see the XRP price eventually creating a higher high, as expected from the bullish divergence pattern. In terms of a specific price target, Marks' projection shows that the next peak could reach at least $3.80, which would push XRP beyond its current all-time high of $3.40.

However, this outlook hinges on the XRP price holding above the bullish divergence support at $2. Any sustained breakdown below this threshold could challenge the strength of the projected rally and alter the bullish outlook. Adding to this perspective, Marks also noted the similarity between XRP's consolidation in the past few weeks since it reached $3.36 and that of a consolidation after a strong rally in the first half of 2017. Although the current consolidation phase has lasted longer than the one observed back then, both formations share key structural similarities. The 2017 consolidation ultimately led to a continuation rally that pushed the XRP price to new highs. If history repeats itself, the present consolidation could also be a