- XRP is showing a bullish RSI divergence on the daily chart despite lower price lows
- Momentum is improving, even though price confirmation is still needed
- A confirmed breakout could open the path toward higher targets, including $5
Big trend reversals almost never kick off with fireworks. More often, they begin quietly, when momentum starts to shift even though price still looks heavy and uninspiring. That in-between phase, where consolidation drags on but pressure subtly changes, is usually where longer cycles turn. XRP now appears to be drifting into that kind of zone, one where the technical structure starts pushing back against the broader bearish mood.
In a recent post on X, analyst STEPH IS CRYPTO pointed out a developing signal on XRP’s daily chart that hints at improving momentum under the surface. The focus is on a classic divergence pattern, the type traders tend to watch closely when markets approach possible inflection points rather than clean breakouts.
What the Daily XRP Chart Is Signaling
XRP recently slipped toward the $1.92 area after weeks of sideways-to-lower price action. On the surface, it hasn’t looked great. Price continued printing lower lows, keeping sentiment subdued. But momentum told a different story. Since July 2025, the Relative Strength Index has been forming higher lows on the daily timeframe, even as price drifted lower.
That setup creates a bullish RSI divergence. In simple terms, sellers are pushing price down, but with less force each time. Steph stressed that this doesn’t automatically mean price is about to rip higher. Instead, it suggests downside momentum is fading, which is an important distinction that often gets overlooked.
Why Bullish Divergence Actually Matters
Momentum usually turns before price does. When RSI trends upward while price trends down, sellers are working harder for smaller results. Buyers, quietly, start absorbing supply more efficiently. Over time, that imbalance can flip the structure, setting the stage for either a relief rally or something more sustained.
On higher timeframes like the daily chart, these divergences tend to carry more weight. They often show up near the end of long consolidation phases, acting as early warnings rather than green lights to chase. That’s why experienced traders treat them as context, not confirmation.
How the $5 Scenario Fits In
Steph’s $5 outlook isn’t based on this divergence alone. It reflects a broader recovery scenario that would require price to confirm the momentum shift. If XRP breaks above nearby resistance and holds, it could quickly revisit prior high-volume zones, areas that historically act as acceleration points once buyers regain control.
A sustained move higher would also bring XRP back in line with broader market strength, especially if liquidity rotates into large-cap altcoins again. In that kind of environment, upside targets tend to expand quickly as sidelined capital starts moving.
What Still Needs to Happen
For now, confirmation is still missing. XRP needs to defend recent support and reclaim key resistance levels before a true trend reversal can be called. Divergences can linger for longer than expected, and without price follow-through, they sometimes resolve sideways instead of higher.
That said, the risk profile has shifted. Downside momentum has weakened, and structurally, buyers are in a better position than they were weeks ago.
What This Means for XRP Traders
This bullish divergence doesn’t promise an immediate rally, but it does change the technical narrative. XRP is no longer trading purely on weakness. Momentum now leans toward accumulation, and if price eventually responds, a move toward higher targets, including the $5 region, starts to look far more realistic than it did before.
