Technical Analyst: XRP Setup Looks Absolutely Primed. Here’s why

A recent market update from crypto investor Xaif Crypto has drawn attention to XRP’s current technical structure, emphasizing conditions that he believes place the asset in a potentially decisive phase.

His assessment is centered on a combination of resistance levels, moving averages, and momentum indicators that together form the basis of his outlook.

The captioned chart illustrates these elements, providing a visual reference for the arguments he presents regarding XRP’s position on the daily timeframe.

Resistance Levels and Moving Averages

Xaif Crypto points to XRP’s continued trading directly beneath key exponential moving averages, including the EMA 50, EMA 100, and EMA 200. These levels are often monitored closely by traders to evaluate the trend strength and potential shifts in momentum.

The chart shows XRP positioned slightly under these resistance layers, indicating a zone that traders typically treat with caution due to the possibility of either rejection or confirmation of upward movement once breached.

He describes price action as compressing beneath these major levels, reflecting a period where buying and selling pressures appear balanced. This type of positioning often leads traders to observe whether a decisive move will emerge, especially when longer-term averages converge with shorter-term signals.

Momentum Indicators and Divergence Signals

Xaif Crypto also highlights the role of the Relative Strength Index (RSI) in his analysis. The indicator, according to his commentary, is showing signs of bullish divergence.

This type of divergence occurs when price forms lower lows while the RSI forms higher lows, suggesting that downward momentum may be weakening. While divergence does not guarantee a reversal, it is commonly used to confirm early signs of a potential shift in direction.

The chart provided reinforces this point as XRP rebounds from a lower price. Investor sentiment often increases when divergence is observed around key technical levels, adding weight to the scenario of an upward move.

Market Reactions

Among the responses to Xaif Crypto’s update, an X user, Ozi, commented that he has been anticipating an upward move for XRP for several months. This reaction reflects a broader sentiment shared by traders who have monitored the asset’s prolonged consolidation.

While Xaif Crypto’s analysis is optimistic, the chart indicates that XRP still faces several layers of resistance before any broader trend shift can be confirmed. The convergence of major moving averages above current price levels underscores the importance of a clear breakout for sustained momentum.

For now, the market continues to focus on whether XRP can close decisively above the highlighted zones, which would strengthen the case presented in his outlook.