The post XRP Price Rally Faces Possible Exhaustion and 25% Correction Amid Bearish Divergence Signals appeared on BitcoinEthereumNews.com.
XRP’s current bearish divergence setup mirrors the technical pattern seen in 2018, which preceded an 80% price correction. January’s XRP price rally risks hitting a point of exhaustion due to an emerging bearish reversal signal. “The recent surge in XRP’s price trajectory has sparked concerns of a potential pullback,” stated a COINOTAG analyst. XRP’s price faces potential correction as bearish divergence signals indicate exhaustion; analysts predict critical support levels could be tested soon. XRP Price Chart Hints at 25% Correction XRP has surged nearly 50% in January, briefly topping $3.39 on Jan. 18, its highest level in nearly seven years. However, the explosive rally may face headwinds, with technical indicators signaling a potential downside correction of up to 25%. A key concern is the emergence of a bearish divergence between XRP’s price and its daily Relative Strength Index (RSI). While XRP has been climbing to multi-year highs, the momentum oscillator RSI has trended lower, forming a descending pattern. This divergence indicates that the upward momentum behind XRP’s rally is weakening, raising the likelihood of a reversal in the coming days or weeks. XRP/USD daily price chart (Binance). Source: TradingView Additionally, XRP’s price remains significantly above its 50-day exponential moving average (50-day EMA; the red wave), a key technical support level. As of Jan. 18, the 50-day EMA sits near $2.28, approximately 25% below XRP’s current price of $3.07. Historically, overextended price rallies tend to revisit their EMA levels as traders lock in profits and the market stabilizes, as shown in the 80% correction following a bearish divergence signal in 2018 below. XRP/USD daily price chart featuring 2018’s bearish divergence correction. Moreover, XRP’s latest rally has brought its RSI reading to 66.87, approaching the overbought threshold of 70. While not yet overbought, the RSI’s declining trend suggests waning buying pressure at…