XRP’s Bullish Divergence Signals Potential 20% Price Rally in August

XRP’s $2.80–$2.95 support zone is emerging as a key battleground, with analysts calling it a critical “make-or-break” price level for the next month.

Bullish divergence signals fading XRP sell-pressure

On its four-hour candle chart, XRP shows a bullish divergence, a common signal often hinting at a potential trend reversal. XRP’s price has been making lower lows, while the relative strength index (RSI) — a momentum indicator — is making higher lows. This disconnect suggests that the recent selling pressure has been losing strength. XRP/USD four-hour price chart

Another bullish signal is coming from XRP’s daily chart, where the price is printing what appears to be a Dragonfly Doji candlestick pattern. This candlestick has a long lower wick and little to no upper shadow, with the open and close prices near the top of the candle, suggesting that buyers stepped in strongly after early selling pressure. XRP/USD daily price chart

XRP bounced roughly 65% after printing a similar Doji candlestick in April. Analyst Cryptoes anticipates that XRP will retain its prevailing bullish momentum if the price stays above the $2.80–$2.95 support range, calling it a “make-or-break” level. Source: Cryptoes

XRP price in a falling wedge breakout

XRP is flashing a classic falling wedge pattern on its four-hour chart, a bullish reversal setup that may hint at a strong upside move. XRP/USD four-hour price chart

The XRP/USD pair bounced off the wedge’s lower boundary near the 200-4H exponential moving average (200-4H EMA; the blue wave), showing strong demand at support. A 20% rally toward the $3.60–$3.65 range could unfold in the coming days if the price breaks above the wedge’s upper trendline, aligning with the 0.236 Fib line at around $3.07.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Source: Originally published at Cointelegraph on August 1, 2025.

Frequently Asked Questions (FAQ)

XRP Price Prediction and Technical Analysis

Q: What are the key technical indicators suggesting a bullish outlook for XRP? A: Bullish divergence on the four-hour chart, indicated by lower lows in price and higher lows in the RSI, signals weakening selling pressure. Additionally, the formation of a Dragonfly Doji candlestick pattern on the daily chart suggests strong buying interest after initial selling. Q: What is the significance of the $2.80–$2.95 support zone for XRP? A: This zone is considered a critical "make-or-break" level, with its defense crucial for maintaining XRP's bullish momentum and potentially triggering a rally. Q: What is a falling wedge pattern, and what does it indicate for XRP? A: A falling wedge is a bullish reversal pattern. When XRP breaks above the upper trendline of this pattern, it suggests a potential significant upside move. Q: What is the projected price target if XRP breaks out of the falling wedge? A: A breakout could lead to a 20% rally, potentially targeting the $3.60–$3.65 range, with an initial resistance at the 0.236 Fibonacci line around $3.07. Q: Has XRP shown similar patterns before that led to significant gains? A: Yes, XRP experienced a roughly 65% bounce in April after forming a similar Doji candlestick pattern.

Crypto Market AI's Take

At Crypto Market AI, we leverage advanced artificial intelligence and machine learning to analyze market trends and provide insights into cryptocurrency performance. Our AI-driven tools can help you identify potential trading opportunities and manage risk effectively. For those interested in understanding the technical indicators discussed, our platform offers resources on how to read cryptocurrency charts and the significance of indicators like the Relative Strength Index (RSI). Understanding these elements is key to navigating the dynamic crypto market.

XRP’s ‘bullish divergence’ raises 20% price rally potential in August