Crypto Market Overview

The broader crypto market is experiencing a bullish surge, with Bitcoin trading above the $86,000 mark. ADA has gained a whopping 16% in the last 24 hours. Ripple’s XRP has also bounced back and is currently up by more than 6%, trading at $2.44, aiming to break levels above $2.50.

Bearish Divergence on the 3-Day Chart

Analyst Josh of Crypto World notes that XRP shows signs of a bearish divergence on the 3-day chart. This indicates that while the price has been making higher highs, the Relative Strength Index (RSI) has been making lower highs. This divergence suggests that despite short-term bounces, a strong bullish trend may not be on the horizon. Until XRP confirms an invalidation signal, a bearish trend could still persist.

Short-Term Price Action: Support and Resistance Levels

Currently, XRP is bouncing from a significant support zone between $2.25 and $2.30. If XRP breaks below this level, a drop to the next major support zone around $2 could occur. There’s a lack of strong momentum in either direction for the time being, indicating possible sideways movement in the short term.

The RSI has recently reset to neutral levels, potentially leading to more stable and less volatile price action. Historically, when the RSI reset from overbought conditions, XRP experienced flat price movement for several days.

Resistance Levels to Watch

If XRP continues its short-term bounce, key resistance levels to observe are between $2.65 and $2.80. Additional resistance could appear around $3.00, with potential short-term resistance at $2.50, derived from previous support turning into resistance.