XRP price flashes classic ‘hidden bullish divergence’: Is $5 still in play?
XRP is showing a hidden bullish divergence pattern, suggesting a potential short-term rebound, while significant short positions face liquidation risk.Summary
XRP's 3-day chart displays a 'hidden bullish divergence,' characterized by higher price lows and lower Relative Strength Index (RSI) lows, a pattern historically preceding sharp, albeit temporary, price bounces. Previous occurrences led to rallies of 69% and 49%, though these were not sustained reversals. Currently, XRP is trading near $2.229 after an 11.95% drop, with analysts noting that support lies around $2.20 and between $1.90 and $2. If XRP breaks out from its prevailing symmetrical triangle structure, the upside target is approximately $5. Furthermore, derivatives data indicates over $695 million in XRP short liquidations are concentrated between $2.60 and $3.50, meaning a modest price rebound could trigger a significant short squeeze, limiting near-term downside risk while increasing potential upside volatility.
(Source：Cointelegraph)