A bearish divergence between the XRP price and its daily index (e.g. RSI – relative strength index) may indicate that the current uptrend is weakening. Here’s what this could mean for the XRP price:

$XRP

1. Signal for correction or trend reversal

  • The essence of divergence: If the price of XRP is rising, but the RSI indicator is showing a decline, this indicates that the upward momentum is weakening. This often foreshadows a correction or a downward trend reversal.

  • Likely scenario: Investors may begin to take profits, which will increase selling pressure and lead to a decrease in the price.

    #Ripple

2. Short-term price reduction

  • Bearish divergence is more likely to affect short-term movements. The price may first fall to nearby support levels before resuming its upward movement (if the trend is long-term up).

3. Support and resistance levels

  • When divergence occurs, traders usually look at key levels:

    • Support: Previous lows or Fibonacci levels.

    • Resistance: Areas where price has previously had difficulty breaking upwards.

4. Additional factors

  • Trading Volume: If the divergence is accompanied by a decrease in volume, this confirms a weakening trend.

  • News and Events: Fundamental factors can enhance or neutralize the impact of divergence.

Bearish divergence does not guarantee a price decline, but it is an important signal for caution. It should be considered in combination with other indicators and market conditions. If key support levels are broken, the XRP price could decline further.