XRP is once again at a make-or-break zone.
Currently trading around $1.99, XRP is down roughly 1% in the last 24 hours. However, zooming out reveals something important: XRP is only about 4% lower on the week, outperforming several major altcoins like ADA and BCH, which have seen deeper pullbacks amid ongoing market volatility.
This relative strength is not random.
More importantly, the daily chart is flashing an early bullish reversal signal. While the setup is not fully confirmed yet, one critical price level is acting as the gatekeeper. If it continues to hold, the probability of a short-term rebound of at least 9% increases significantly.
---
📈 Bullish Divergence Signals Selling Pressure Is Fading
Between December 1 and December 14, XRP printed a classic bullish divergence on the daily timeframe.
Here’s why that matters:
Price made a lower low
RSI (Relative Strength Index) made a higher low
This divergence indicates that while price briefly weakened, bearish momentum did not. RSI, a momentum oscillator that measures buying and selling strength, began improving — a strong hint that sellers are losing control.
Historically, this type of divergence often precedes:
Short-term trend reversals
Relief rallies
Momentum shifts from bearish to bullish
⚠️ However, divergence alone is not enough.
It only works if price holds key support.
---
🛡️ $1.97 — The Line That Bulls Must Defend
The most important level on the chart right now is $1.97.
XRP has repeatedly defended this zone, and on-chain data explains why this support is so resilient.
🔍 Cost Basis Heatmap Insight
Between $1.97 and $1.98, approximately 1.79 billion XRP were accumulated
This creates a dense holder cluster, meaning many investors bought here
When price trades near this range, holders are less likely to sell at a loss
This behavior naturally strengthens support.
✅ As long as XRP remains above $1.97 on a daily close, the bullish divergence remains valid — especially if RSI continues to trend upward.
---
🎯 Why $2.17 Is the First Major Upside Target
If $1.97 holds, XRP has room to breathe — and move higher.
The first meaningful resistance sits at $2.17, representing roughly a 9% upside from current levels.
Why this level matters:
The cost basis heatmap shows heavy supply between $2.16–$2.17
Around 1.36 billion XRP were acquired in this zone
Many holders may look to sell or break even, creating selling pressure
This makes $2.17 a true test for bulls, not just a technical level.
---
🚀 What Happens If XRP Breaks $2.17?
A daily candle close above $2.17 could significantly shift momentum and unlock higher targets:
$2.28 — short-term continuation level
$2.69 — previous high-liquidity zone
$3.10 — major psychological and technical resistance
These upside levels remain conditional and depend on:
Overall crypto market strength
Bitcoin stability
Sustained volume on XRP
---
❌ Invalidation: When the Bullish Setup Fails
The bullish case is invalidated if:
XRP records a daily close below $1.97
If that happens, downside targets open up quickly:
$1.81
$1.77
A break below support would weaken RSI structure and signal that bears have regained control.
---
🧠 Final Take: XRP Is at a Decision Point
XRP is sitting right at the crossroads.
📊 Bullish divergence is active
🛡️ Strong on-chain support at $1.97
🎯 A 9% move toward $2.17 is technically justified
But everything hinges on one level holding.
If bulls defend $1.97, $XRP could be gearing up for its next short-term rally.
If they fail, patience — and lower prices — may be required.
🔥 This is the kind of level that separates fake bounces from real reversals.$BCH $ADA
#BinanceBlockchainWeek #BTCVSGOLD #CPIWatch #TrumpTariffs #BinanceAlphaAlert
