XRP Hidden Bullish Divergence: Technical Breakdown and Short Squeeze Setup
XRP’s charts are flashing a hidden bullish divergence—price hits higher lows while RSI prints lower lows. Honestly, this setup has sparked some serious rebounds before. Early 2022 saw a 69% bounce, and late 2023 into early 2024 brought a 49% rally. You know, analysts call this weakening downside momentum, but let’s be real: it doesn’t guarantee a long-term bull run.
Check the TradingView data: XRP is testing $2.20 support, and Guy on the Earth flagged this pattern. Historically, it predicts 50-70% surges, making it huge for short-term plays. Anyway, XRP just dropped nearly 12% in a day to $2.229, setting the stage for rapid moves.
Adding to this, the symmetrical triangle on weekly charts backs the bounce. If it breaks out, target’s around $5—that’s over 100% gains. Multiple patterns are lining up, so short-term upside looks tempting.
Compared to other signals, some are bearish, but this divergence zeroes in on fading selling pressure. Most traders miss this nuance, sticking to basic trends instead.
On that note, patterns alone won’t cut it; mix in institutional buys and derivatives, and you’ve got a high-odds setup. Right now, XRP’s primed for explosive action, with this divergence as the trigger.
I’d be hoping to hold this range and spring back as the week goes on, but the bias is bearish in the moment
Guy on the Earth
$2.20 is next support with the 2025 major support between $1.90 and $2 next up if we lose this range
Guy on the Earth
XRP Short Squeeze Potential
Derivatives are a mess: over $695 million in short leverage versus just $32 million long. This imbalance screams short squeeze—even a small rebound could set it off. Most shorts cluster between $2.60 and $3.50, so moves there might cause a cascade.
CoinGlass heatmaps show where positions are weak, creating ‘liquidation magnets’ as prices near. History says similar setups in crypto end violently, forcing closures fast.
Supporting this, long liquidity is thin below $2.16, meaning downsides might be capped. If prices hit short zones, volatility could explode. It’s arguably true that risk-reward favors bulls here.
Versus Bitcoin or Ethereum, XRP’s structure is tighter, so imbalances hit harder. You know, that means sharper moves when things shift.
Synthesis? After bearish stretches, squeezes often flip trends. Combine this with tech patterns and big money buying, and it’s a powder keg—tiny buys could trigger huge swings.
XRP Institutional Accumulation
Market sentiment’s split: institutions are loading up while retail freaks out. On-chain data shows Net Holder Position Change positive since August—whales bought 55 million XRP worth $1.1 billion in three days. That’s massive.
Exchange outflows hit records, with 2.78 million XRP pulled in late October. This matched Evernorth Holdings’ $1 billion treasury grab of 388 million tokens. Coordinated moves like this often signal supply shocks, pumping prices when demand jumps.
Ripple Labs plans a $1 billion buyback too, adding to its 4.5 billion stash—37 billion more in escrow. These moves shout confidence in XRP’s future.
Retail’s bearish ratio is under 1.0, but big money’s conviction is strong. Historically, accumulation in fear zones marks bottoms and precedes rebounds.
Anyway, this sentiment could spark a major shift. With institutions and tech support aligned, fear might flip to greed fast, igniting explosive moves.
XRP Technical Analysis
XRP’s action echoes past fractals from April and June 2025—bounces off trendline support drove rallies to $3.20-$3.66. Repeats like this add weight, showing similar accumulation in charts.
Fibonacci points to $2.77 resistance; break that, and momentum could push to $2.75-$3.00, a 12-18% jump. Past turns have hinged on these levels.
The symmetrical triangle targets $5 on breakout, a classic consolidation signal in cryptos. This aligns with institutional themes, so watch closely.
Versus Bitcoin or Ethereum, XRP’s patterns diverge due to regs and use cases. Broader markets affect it, but separate analysis is key.
On that note, XRP’s consolidating now, possibly before big moves. Support, big money, and reg catalysts might fuel a reversal, but risk stays down until resistance breaks.
XRP Regulatory Developments
Regs keep shaping XRP’s spot. Ripple CEO Brad Garlinghouse pushes for equal treatment—crypto firms should match bank standards on AML and KYC, but get Fed accounts too. It’s a fair ask, right?
Globally, frameworks are advancing: Bahrain set stablecoin rules, Europe’s MiCA and the U.S. GENIUS Act show standardization. This cuts uncertainty, drawing in institutions.
Ripple teamed with Absa Bank for custody in South Africa, tapping its 2.07 trillion rand assets. First major African move—reg-friendly innovations boost cross-border finance.
Europe’s unifying faster than the U.S.’s messy approach, highlighting the innovation-safety balance struggle.
Synthesis? Advocacy’s paying off slowly; worldwide, digital assets are joining mainstream finance. Clarity could tame volatility and mature markets.
One of the things I would ask everyone to do, both reporters and otherwise, is to hold traditional finance accountable for, yes — I agree that the crypto industry should be held to the same standard around AML, KYC, OFAC compliance: Yes, yes, yes. And we should have the same access to structure like a Fed master account. You can’t say one and then combat the other
Brad Garlinghouse
XRP Price Predictions
Tech, fundamentals, and regs converge for a wild XRP outlook. Short-term, patterns hint at $2.75-$3.00 if resistance falls—12-18% gains. Long-term, the triangle eyes $5, over 100% up. But is $5 really achievable, or just hype?
Institutions are piling in: Evernorth’s $1 billion buy and Ripple’s plans show belief that could drive prices higher as accumulation intensifies.
On-chain metrics support this—Net Holder Position Change is positive, whale wallets at records. Strong hands are betting big here.
Versus past cycles, focus shifted to utility and compliance, suggesting steadier growth. Still, threats like hacks and geopolitics need constant watch.
Bottom line: XRP’s path hinges on clearing reg fog and capitalizing on institutional interest. Push clarity and security, and it might integrate deeper into finance, fueling sustainable growth. But let’s debate—short-term pop or long-term hold?
