A bullish divergence on the Relative Strength Index (RSI) is a significant signal in cryptocurrency charts, often indicating a potential shift in market momentum. XRP has recently displayed such a pattern on its daily chart, reminiscent of the decisive bottom observed in mid-2022. According to trading analyst STEPH IS CRYPTO, this technical setup could signal an important turning point for XRP.
In June 2022, XRP reached a low point of $0.30. At that time, the RSI already suggested weakening selling momentum, even as the price continued to make lower lows. This divergence served as an early indication that bearish pressure was diminishing, and the subsequent rebound saw XRP climb by more than 100% from those lows.
The RSI is a momentum indicator that measures the speed and change of price movements on a scale from 0 to 100. A bullish divergence occurs when the price makes lower lows, but the RSI forms higher lows. This pattern is frequently interpreted by traders as a sign of an impending trend reversal and weakening bearish sentiment.
The Significance of the New Divergence
The current XRP chart exhibits a similar pattern: the price has formed lower lows, while the RSI is printing higher lows. Steph highlights that this mirrors the setup seen in June 2022. If historical patterns hold true, this could indicate that buyers are preparing to regain control of the market.
It is crucial to acknowledge that divergences are not infallible indicators. There are instances where the price may continue to move downwards despite an RSI signal. Consequently, traders often seek additional confirmation, such as increased trading volume or breaks of established trendlines, before acting on a divergence.
Potential Market Outcomes
Should buyers successfully assert their influence, XRP could experience a rapid rebound. Historical price action suggests the potential for substantial gains following such signals. Conversely, if selling pressure persists, the divergence may prove to be a false signal, potentially leading to a period of sideways price action or further declines.
$XRP just printed the same bullish divergence on the RSI we had at the 2022 bear market bottom. This could get interesting fast pic.twitter.com/YZ0OfmCufP
— STEPH IS CRYPTO (@Steph_iscrypto) November 26, 2025
Current market conditions for XRP remain mixed, with resistance levels to overcome and broader cryptocurrency sentiment showing uncertainty. Nevertheless, the presence of this bullish divergence makes XRP a cryptocurrency that warrants close observation.
Why Traders Are Watching Closely
This technical setup presents a unique risk-reward scenario for both long-term investors and short-term traders. The prospect of a strong reversal is appealing, but a degree of caution is advisable. False signals can occur, and effective risk management remains paramount in navigating the volatile crypto markets.
Steph's analysis suggests a pattern similar to the bottom seen in 2022. If further confirmation emerges, XRP might be poised for one of its most significant price movements in 2025. Maintaining discipline and patience will be critical for those looking to capitalize on this potential opportunity.
Disclaimer
This content is provided for informational purposes only and should not be construed as financial advice. The opinions expressed herein may reflect the author's personal views and do not necessarily represent the official stance of Times Tabloid. Readers are strongly encouraged to conduct their own thorough research before making any investment decisions. Any actions taken by the reader are solely at their own risk. Times Tabloid assumes no responsibility for any financial losses incurred.