- XRP forms bullish divergence on MACD with strong diagonal support, signaling a possible breakout after sustained consolidation.
- Price action shows higher lows and MACD crossover, reinforcing bullish momentum as XRP nears apex of wedge formation.
- Break of lower high structure and support confluence point to rising buyer strength and potential rally toward the $10 range.
XRP appears to be gaining momentum after forming a bullish divergence with its MACD. The price recently bounced from a historically strong support level. This move comes after a tightening consolidation phase, signaling a potential breakout. The chart shows XRP is nearing the apex of a wedge formation. Consequently, many traders are watching for a decisive move.
From October to November 2024, XRP experienced a sharp rally. The upward surge saw XRP reaching new local highs. However, the price entered a correction phase afterward. This period formed a series of lower highs and higher lows. Besides, a descending trendline marked the resistance clearly. Support touches formed an ascending diagonal base, indicating strong downside rejections.
Bullish Divergence Aligns with Support Structure
The MACD shows a bullish divergence forming from February to April 2025. The histogram prints higher lows during this time. Additionally, price action shows equal or slightly higher lows, creating a strong confluence. A bullish crossover recently emerged on the MACD near its most recent low. Hence, this reinforces the case for upward momentum.
Moreover, XRP remains above diagonal support, with three key touches confirming its reliability. Each touch marks a consistent bounce back into the range. These reactions are mirrored by the MACD’s upward structure. Consequently, the chart reflects symmetrical development between price and momentum indicators. The current range is tightening, indicating that a large move may soon unfold.
Market Outlook Points to Upside Potential
XRP is approaching a key resistance level. However, the bullish structure suggests buyers are gaining control. The recent price movement broke a short-term lower high structure. This subtle shift could mark the beginning of a trend reversal. Besides, prior bullish divergences have led to strong rallies in the past.
Although volume is absent from the chart, the technical confluence remains strong. Support strength, combined with MACD behavior, supports the bullish narrative. Traders may anticipate a breakout if XRP clears immediate resistance. If confirmed, XRP could target the $10 range based on alternative structural projections.
