The price of XRP has recovered from its recent lows, rising about 4% from yesterday's bottom and stabilizing after a slight pullback. While the broader trend remains cautious, new indicators suggest that the downward momentum may be fading.

As XRP's source recently approached regulated banking status, the focus now shifts to whether large holders continue to intervene to confirm a real trend change.

A bullish divergence is forming as the largest whales begin to add.

On the daily chart, the price of XRP showed a bullish divergence between December 1 and December 12. During this period, the price recorded a lower low, while the Relative Strength Index (RSI) formed a higher low. The relative strength index measures momentum, and this pattern often appears when selling pressure weakens before a rebound.

Want more insights like this on tokens? Subscribe to the daily crypto newsletter from editor Harsh Notaria here.

This setup has already caused a rebound, but what makes it more exciting is the whale behavior. The two largest groups of XRP holders have already started responding.

Wallets holding over 1 billion XRP increased from 25.36 billion on December 9 to 25.42 billion. Meanwhile, wallets containing between 100 million and 1 billion XRP reversed their selling trend, rising from 8.08 billion on December 11 to 8.15 billion at the time of publication.

Overall, these two groups have added about 130 million XRP. At the current price, this amounts to approximately $265 million in net accumulation. This confirms that the largest stake holders are not just monitoring the divergence but are acting on it.

Timing is also important. Ripple has recently approached obtaining a U.S. banking license, strengthening its long-term institutional narrative. This regulatory framework adds additional weight to whale interest at these levels.

XRP price levels that determine whether the reversal will continue or not.

For the bullish divergence to remain valid, the price of XRP needs to follow through. The first important level is $2.11. A daily close above it will represent a 3.72% move from current levels and confirm that buyers are regaining control in the short term. XRP has not held above $2.11 since early December.

If this level breaks, the next resistance will be at $2.21. Only a sustained move above $2.21 will change the structure upward and reopen the path toward $2.58 or higher.

On the downside, the risk remains clearly defined. If the price of XRP drops below $1.96 while the Relative Strength Index weakens, the bullish divergence will lose its validity. This scenario will first reveal $1.88, followed by $1.81 if selling accelerates.

Currently, the setup is building but incomplete. Momentum indicators show improvement, and whales have already responded once. For this reversal to fully materialize, these large holders need to continue adding support, not just responding temporarily.