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XRP price bearish divergence spotted, hinting at a drop to $2.28

XRP price chart hints at 25% correction

XRP has surged nearly 50% in January, briefly topping $3.39 on Jan. 18, its highest level in nearly seven years. However, the explosive rally may face headwinds, with technical indicators signaling a potential downside correction of up to 25%.

Akey concern is the emergence of a bearish divergence between XRP’s price and its dailyĀ Relative Strength IndexĀ (RSI). While

XRP has been climbing to multi-year highs, the momentum oscillator RSI has trended lower, forming a descending pattern.

This divergence indicates that the upward momentum behind XRP’s rally is weakening, raising the likelihood of a reversal in the coming days or weeks.

XRP/USD daily price chart (Binance). Source: TradingView

Additionally, XRP’s price remains significantly above its 50-day exponential moving average (50-day EMA; the red wave), a key technical support level.

As of Jan. 18, the 50-day EMA sits near $2.28, approximately 25% below XRP’s current price of $3.07.

Historically, overextended price rallies tend to revisit their EMA levels as traders lock in profits and the market stabilizes, as shown in the 80% correction following a bearish divergence signal in 2018 below.

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