There are indications that the cryptocurrency may be aiming a return after a period of collapse that saw XRP lose a large portion of its profits following a favourable court judgement against the U.S. Securities and Exchange Commission (SEC).
According to a coin warning from 100eyes coin Scanner, XRP, the fifth-largest cryptocurrency by market capitalization, saw an RSI Bullish Divergence on its hourly chart.
The most recent CoinGecko shows that XRP traded at about $0.496, up 0.7%, with a market worth of more than $26 billion.
Bullish and bearish divergences
When the price of an asset falls while the RSI rises, this is known as a Relative Strength Index (RSI) positive divergence and frequently denotes the possibility of an upward price movement.
For XRP owners who have seen the currency lose value in a generally negative market climate, this discrepancy represents a glimpse of optimism.
Although some traders may view this as a strong buy signal, sceptics may argue that caution is necessary as divergences may be deceiving. Additionally, the trajectory of XRP might still be impacted by the general market circumstances as well as forthcoming legal and regulatory events.
Erasing gains after a favorable court decision
Despite winning its legal battle with the SEC in July, Ripple’s early exuberance hasn’t been matched by the market. The historic decision raised XRP’s price, which on July 20 reached a year-high of 83 cents.
The token is currently trading below the 50-cent level, having almost completely erased all of its post-victory gains. This decline occurs despite other positive legal developments in the cryptocurrency industry, like as Grayscale’s key victory over the SEC. Assets that were previously driven by solid fundamentals look to be being impacted by bearish sentiment.
According to U.Today, Google searches for XRP have lately dropped significantly as well, indicating that there is not much interest in the cryptocurrency.
