$XRP traders have been urged to exercise caution after analyst STEPH IS CRYPTO flagged a potential bearish divergence on the weekly timeframe. In a recent X post, he shared a chart showing XRP’s price pushing into higher highs along a rising trendline while the Relative Strength Index (RSI) has been trending lower.

The RSI currently sits around 54.8, signaling waning momentum despite the asset’s upward price action. Such divergences, particularly on higher timeframes like the weekly chart, often carry weight as early signals of weakening trends.

✨Understanding the Signal

Bearish divergence occurs when momentum indicators fail to confirm higher prices, suggesting that underlying buying strength is fading. In XRP’s case, the weekly RSI has formed a sequence of lower highs while price continues to test resistance.

According to technical analysis principles, this scenario raises the probability of a corrective move or consolidation phase. While divergence does not guarantee an immediate reversal, it is considered a red flag for traders who may otherwise assume the uptrend remains firmly intact.

✨XRP’s Current Market Position

As of report time, XRP is trading at $2.80, giving it a market capitalization of roughly $168 billion. The token remains one of the most liquid digital assets, with multi-billion-dollar daily trading volumes across exchanges.

This depth makes XRP highly sensitive to broader market flows, including investor risk appetite, institutional allocations, and regulatory news. In this context, a technical signal such as weekly divergence is amplified, as it may influence both retail sentiment and larger market participants.

✨Key Technical Levels to Watch

STEPH’s chart identifies two levels of importance. The first is the rising price trendline that has consistently acted as resistance on weekly closes. The second is the descending RSI line marking lower highs. A decisive breakout above both resistance levels would weaken the bearish divergence narrative and favor further continuation to the upside.

On the other hand, repeated failure at these levels could confirm weakening momentum and open the door for a corrective pullback toward structural supports that align with weekly moving averages.

✨Market Flows and Risk Management

Adding to caution, recent data shows significant XRP transfers to exchanges — a possible sign of selling pressure building in the background. Such flows often precede increased volatility, particularly when technical signals also point to exhaustion.

For XRP holders, this underscores the importance of active risk management. Traders may consider moderating position sizes, tightening stops, or hedging exposure while waiting for a clearer breakout or breakdown confirmation.

✨Final Take

STEPH IS CRYPTO’s bearish divergence warning is not a prediction of collapse, but it is a clear reminder that momentum is weakening even as price challenges resistance. For disciplined traders and long-term holders, the signal suggests a period of vigilance.

The coming weekly closes will be crucial in determining whether XRP can invalidate this setup and push higher, or whether the market is due for a corrective phase before any further advance.

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