XRP remains the subject of discussion among various crypto experts. In the recent past, experts have been divided on the future of its growth. While BarriC opined that XRP would easily reach three figures, other experts disagreed with him. However, another expert recently came up with something interesting about XRP.
The Expert Opinion
Market watchers are paying attention to XRP due to a recent analysis by Cobb (@AlexCobb_), suggesting the digital asset might be on the verge of a significant rally. Cobb’s analysis revealed a hidden bullish divergence, indicating that XRP could be gearing up for a historic move despite its recent underwhelming performance. Since mid-April, XRP has formed higher lows on the weekly chart, indicating bullish momentum. However, due to ongoing bearish pressure, this has not translated into higher highs. Yet, a different trend emerges when examining the Relative Strength Index (RSI), a crucial momentum indicator.
#XRP what happens next?
— Cobb (@AlexCobb_) May 15, 2024
this thing is SOOO F***ING READY🚀🚀 pic.twitter.com/mKiCkOMbYl
Typically, the RSI moves with price movements, declining alongside lower price lows. However, XRP’s RSI on the weekly chart has been trending downwards. It recently reached its lowest RSI in history despite forming higher price lows, indicating a hidden bullish divergence. This technical pattern suggests a potential reversal in the downtrend, indicating that buying pressure is building even during periods of price weakness. Hidden bullish divergences are often seen as a precursor to an uptrend.
Support From On-Chain Data
According to on-chain data from Santiment, evidence supports the idea of an upcoming rally for XRP. This data reveals that wallets holding at least 1 billion XRP have been accumulating significant amounts, buying around 340 million XRP since March. This, therefore, hints at a potential surge in price.
Moreover, data from Coinglass shows a pattern of XRP withdrawals from exchanges since early April. With only one day showing positive net flows, it suggests that investors are transferring their XRP holdings off exchanges, possibly in anticipation of a price increase. This ongoing trend of withdrawals further strengthens the belief in substantial buying pressure behind XRP.
Analyst Cobb compares the current scenario to the 2016-2017 period, suggesting a similar move is on the horizon. While XRP currently trades at $0.5173, the analyst did not specify a particular target.
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