XRP Gears Up For Breakout, Bearish Divergence Raises Concerns
XRP is maintaining strength above key support levels, but uncertainties remain regarding a potential breakout. Despite optimism from recent momentum, bearish divergences on higher timeframes necessitate caution.
Market Caution Due to Bearish Divergence
- CasiTrades reports that XRP has shown momentum after bouncing off a critical trendline.
- The price faces a significant resistance at $3, which must be overcome to confirm a new bullish trend.
- Key support zones are identified at $2.79 and $2.58.
- The price action suggests an ABC corrective pattern rather than a 5-wave impulsive rally.
- Bears are indicated by divergence on the 4-hour chart.
- Monitoring of the RSI on the 1-hour chart is crucial as it tests the lower support trendline.
A retest of $2.58 could potentially serve as a catalyst for a larger bullish move, although failure to break through resistance could invalidate the bullish structure.
Support Levels and Resistance Barriers
- Current support levels remain unchanged, indicating anticipation for a decisive move to break resistance.
- A true Wave 3 breakout requires surpassing resistance levels at $2.79, $3.00, and $3.25 without hesitation or rejection.
- Attention should also be paid to Bitcoin's movements for broader market alignment.
- Signs of bullish divergence during the next pullback could trigger the anticipated breakout.
