- XRP’s price dropped by 6% in the past 24 hours but shows signs of a potential bounce.
- A bullish divergence on the RSI could indicate weakening bearish momentum for the Ripple-affiliated token.
What happened: XRP price drop shows potential for recovery
Ripple-affiliated cryptocurrency XRP suffered a sharp 6% decline within the last 24 hours, making it the worst-performing token among the top 10 cryptocurrencies, according to CoinGecko. Despite this, the 100eyes Crypto Scanner detected a bullish divergence in the XRP/USDT pair on an hourly chart.
This divergence, marked by an increasing Relative Strength Index (RSI) despite a falling price, suggests that the current bearish momentum may be losing steam. While this technical signal indicates a possible relief bounce for XRP in the short term, experts caution that additional indicators should be analysed for a more comprehensive market assessment.
XRP’s struggles are not isolated; other major tokens such as Cardano (ADA) and Dogecoin (DOGE) also faced significant losses of 5.9% and 5.7%, respectively. Meanwhile, Bitcoin (BTC) dropped by 3%, retreating after nearing the psychological $100,000 mark.
XRP’s recent declines come despite its temporary rally following the launch of Ripple’s RLUSD stablecoin. The token is still far from its 2018 all-time high and faces stiff resistance on its path to recovery.
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Why it’s important
XRP’s recent price action underscores the inherently volatile nature of cryptocurrency markets, especially during periods of broader uncertainty and shifting investor sentiment. The formation of a bullish divergence on XRP’s charts offers a glimmer of hope for traders seeking short-term recovery opportunities.
Such divergences often signal a weakening in selling pressure, making the token a potential candidate for speculative relief rallies. This development is particularly significant for traders who rely heavily on technical analysis to shape their market strategies, as it highlights a possible turning point in the token’s price trajectory.
Meanwhile, macroeconomic factors and market sentiment continue to play a dominant role in shaping crypto dynamics. Bitcoin’s retracement and the simultaneous underperformance of other major altcoins like Cardano and Dogecoin suggest that the market is experiencing a general pullback.
Ripple’s recent launch of the RLUSD stablecoin was anticipated to bolster XRP’s momentum, but the broader market downturn has overshadowed this otherwise positive development.
Looking ahead, analysts point to potential long-term catalysts, including growing institutional interest in XRP-focused ETFs and greater regulatory clarity, as possible drivers of renewed bullish momentum in 2025. However, the token’s near-term recovery remains uncertain amidst these mixed signals.
