XRP Shows Bullish Divergence on Weekly Chart: Are All-Time Highs Within Reach?

XRP has recently caught the attention of traders following a notable change on the weekly chart that was highlighted by a prominent crypto trader. This asset is exhibiting a technical signal that has historically appeared near pivotal moments, leading to discussions about its potential for returning to previous all-time highs.

Key Takeaways

XRP's price structure remains within a defined range from $2 to $3, consistent since 2018.
Recent momentum indicators show bullish divergence, suggesting weakening sell pressure.
A shift from short-term traders to long-term holders is stabilizing the market.
Broader market trends indicate a potential for capital rotation into altcoins like XRP.
A breakout above key resistance levels could pave the way to revisit previous all-time highs.

XRP Price Outlook: XRP Enters a Re-Accumulation Phase After the Rally With the $3.20 Target Back in Focus

XRP’s Well-Defined Trading Range and Emerging Bullish Momentum

The crypto trader emphasizes that XRP's market structure is firmly anchored within a specific price range established during the 2018 market peak. This zone, which spans approximately from the low-$2 to low-$3 area, has acted as a structural equilibrium for XRP across diverse market phases. Since late 2024, XRP's price has remained contained within this range, continually testing both support and resistance while failing to make a decisive breakout or breakdown.

XRP All-Time Highs
Source: X

What sets the current situation apart from past struggles is the momentum behavior. Recently, momentum indicators have begun forming higher lows while the price revisits familiar support levels. This indicates that downside movements are becoming weaker, suggesting that selling pressure is subsiding. This bullish divergence implies that the selling wave is fading, as sellers are exerting more effort for diminishing results. The trader's chart corroborates this viewpoint, showing the price maintaining support within the range while underlying momentum is trending upwards.

From a structural viewpoint, this consolidation phase reflects absorption rather than weakness. Short-term traders are gradually being supplanted by long-term holders, which enhances overall market stability. Although a bullish divergence does not guarantee that XRP will reach its all-time highs again, it does reopen that possibility in a technically significant manner. A sustained breakout above the upper limit of this multi-year range would serve as crucial confirmation. Until that breakout happens, all-time highs remain a possibility reliant on further developments—but this divergence indicates that the foundation for such an upward move might be forming.

Market Conditions and Potential for Altcoin Recovery

The broader market environment adds weight to the trader's weekly analysis of XRP. With equity markets at record highs, metals losing strength, and the US dollar declining—conditions that historically signal capital rotation—altcoins like XRP seem to be overlooked, having underperformed when compared to newer narratives.

According to the trader, this disconnect is particularly noteworthy: many altcoins still trade significantly above their bear market lows, yet a cautious market position suggests the potential for significant gains if capital shifts away from crowded trades. The bullish divergence on XRP’s weekly chart does not promise an immediate price surge or automatic return to all-time highs. However, it hints at the structural groundwork for a larger move starting to take shape.

If XRP can reclaim and decisively break above its multi-year range's upper boundary, the argument for revisiting previous peaks becomes much stronger. This setup reflects a temporary frustration rather than outright failure. Momentum is building, and while patience is essential, the current chart suggests that the market is positioning itself for a potential delayed recovery in the altcoin sector.

XRP price chart from Tradingview.com
Bears push the price further down | Source: XRPUSDT on Tradingview.com