A Critical Price Level for XRP Appears — Holding It Could Trigger a 9% Bounce
XRP is trading near $1.99, down approximately 1% in the last 24 hours. Despite the overall market volatility, it is only about 4% lower for the week, showing relative stability compared to many altcoins like ADA and BCH.
More importantly, the chart is showing an early signal of a bullish reversal. The setup is not yet confirmed, but if a key level continues to hold, the chances of a short-term bounce, at least of 9%, increase significantly.
Bullish Divergence Appears as XRP Price Defends Key Support
XRP has formed a bullish divergence on the daily chart between December 1 and December 14. A bullish divergence occurs when the price makes a lower low, but the Relative Strength Index (RSI) makes a higher low. The RSI is a momentum indicator that measures the strength of buying and selling. When the RSI improves while the price weakens, it often signals that selling pressure is decreasing.
In the daily chart, a standard bullish divergence like this can lead to a trend reversal — from bearish to bullish.
However, this divergence alone is not enough. It only matters if the price of XRP maintains support.
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That support is located near $1.97. XRP has repeatedly defended this area, and on-chain data helps explain why.
The base cost heat map shows a dense cluster of XRP bought between approximately $1.97 and $1.98.
Around 1.79 billion XRP were accumulated in this range. A base cost heat map shows where large groups of holders bought their coins. When the price trades near these levels, holders are less likely to sell at a loss, reinforcing support.
As long as XRP remains above $1.97, the bullish divergence theory remains valid, provided that the RSI reading remains strong.
Why $2.17 is the first real test for the bulls
If support holds, XRP has room to move upward. The first upside target is located near $2.17, representing approximately a 9% move from current levels.
This level matters because the base cost heat map shows a strong supply between $2.16 and $2.17. Approximately 1.36 billion XRP were acquired in this zone. This makes it a strong resistance area, where selling pressure is likely to appear.
If the price of XRP exceeds $2.17 with a daily candle close, it could pave the way to $2.28, then $2.69, and eventually $3.10. However, those levels remain secondary for now and depend on overall market conditions.
The invalidation is clear. A daily close below $1.97 would weaken the reversal setup and expose the low towards $1.81 and $1.77.
For now, the price of XRP is at a decision point. The bullish reversal signal is active, but only if the most important support level continues to hold.
