XRP (XRP) Shows Potential for a Rally as MACD Flips and RSI Divergence Points to Outperformance Against the Broader Crypto Market

XRP has exhibited significant technical patterns that suggest potential outperformance against the broader cryptocurrency market.

XRP has shown potential for a rally as MACD flips and RSI divergence points to outperformance against the broader crypto market.

A new analysis by prominent YouTuber Blockchain Backer suggests that XRP might be poised for substantial outperformance against the broader cryptocurrency market. The analysis highlights a massive weekly bearish divergence for the broader crypto market relative to XRP at critical resistance levels. This technical setup has previously led to XRP outperforming in 2017 and 2021, hinting at a similar trajectory this time around.

“After reaching historical extremes, a massive weekly bearish divergence showed up for TOTAL vs XRPUSD right at resistance. MACD hit the historical extreme, and flipped aggressively. When these events occurred in 2017 and 2021, XRP outperformed. And it seems to be in motion.”

Blockchain Backer's analysis shows that the broader crypto market has hit a critical resistance level relative to XRP (black horizontal line). Historically, this resistance level has marked points where price movements face significant challenges.

The Relative Strength Index (RSI) is showing a massive weekly bearish divergence for the broader market vs XRP (upper chart). This divergence occurs when the market makes new highs, but the RSI forms lower highs, signaling weakening momentum. Such divergences often precede significant price corrections or trend reversals.

The Moving Average Convergence Divergence (MACD) has reached a historical extreme and flipped aggressively (lower chart). This flip from bullish to bearish is highlighted with a red circle, indicating a potential trend change for the broader market relative to XRP.

Historical patterns from 2017 and 2021, marked by green rectangles on the chart, show similar technical setups. In both instances, XRP experienced substantial price increases following these patterns.

The Stochastic RSI shows the broader market to be in overbought conditions, which could lead to a short-term bearish reversal. However, these conditions have historically preceded significant bullish runs for XRP once the market corrects.

During the bullish phase in 2017, XRP rose 43,000% from $0.0065 to $2.80. In 2021, it increased by around 791%, moving from $0.22 to $1.96. Based on the current price of $0.60, if XRP experiences a rise similar to 2017, it could reach approximately $258. If it follows the 2021 pattern, it might hit $5.35.

As XRP continues to show strength in the market, market commentator The3Antons suggests that XRP might be on the verge of flipping Ethereum. XRP's recent 59% surge from $0.3823 to $0.6114 has marked significant bullish momentum.

The3Antons has highlighted a larger trend, the “Wealth Transfer,” which is benefiting XRP as it outperforms the market. His March forecast predicted a major XRP rally, potentially leading to it surpassing Ethereum in market capitalization.

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