XRP extended its pattern of sideways trading in recent sessions, with the price remaining confined to a narrow range. Many traders have turned their attention to technical signals in an effort to anticipate the market’s next significant move.
Analyst spots hidden bullish divergence
Crypto analyst Dark Defender pointed to signs of a hidden bullish divergence appearing on XRP’s daily chart, suggesting the potential for a stronger upside movement. Hidden bullish divergence is a technical pattern that some traders associate with the continuation of an underlying bullish trend, even if the price action has temporarily weakened.
In a recent post on social media, Dark Defender maintained that XRP’s daily timeframe “still shows hidden bullish divergence compared to 5 June” and stated that “a strong move is incoming.” He predicted the expected move will likely be to the upside as long as the current wedge formation remains intact.
Dark Defender said that XRP’s daily chart displays hidden bullish divergence relative to the June 5 price action and argued that a strong move is likely, provided the wedge structure holds.
The chart shared by the analyst highlights two price levels, $1.067 and $1.13, as potential areas of focus if XRP manages to break out above its current range.
Comparison with June 5 market structure
To support his outlook, Dark Defender compared the current daily market structure to that of June 5. He identified two similar price zones but emphasized that the Relative Strength Index (RSI), a prominent momentum indicator, has formed a higher low compared to early June. This, according to the analyst, reinforces his case for a hidden bullish divergence and the potential continuation of an upward trend.
XRP currently trades within a descending wedge pattern, marked by a downward-sloping resistance line above recent price candles and a rising support line below. Such wedge structures are often associated by analysts with trend reversals or breakouts, especially when volume and momentum indicators align.
Dark Defender’s analysis continues to emphasize these technical factors as pivotal for any near-term breakout.
Mini dictionary: Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, providing signals about overbought or oversold conditions in a market.
| Price Area | Support Level | Resistance Level | RSI Comparison |
|---|---|---|---|
| Current | Ascending | Descending | Higher low |
| June 5 | Similar zone | Similar zone | Lower low |
Community responds with skepticism and support
The analyst’s outlook generated a mixed reaction from the XRP community and other market participants.
One user, Ishmail, questioned whether the widely discussed hidden bullish divergence could serve as a trap for traders, cautioning that if too many expect a bullish breakout, large market participants could take advantage of those expectations by triggering an adverse move.
Another commenter, Phoenix Investor, criticized the analyst’s persistent bullish stance, alleging that similar forecasts have been made repeatedly over the years. This user also speculated about Ripple’s possible involvement in promoting such opinions but did not provide any evidence to support this claim.
Some community members expressed doubt about the bullish predictions, warning that crowdsourced optimism can sometimes signal the risk of an opposite outcome if major players act against consensus expectations.
Dark Defender did not directly respond to these criticisms. Instead, he reiterated his belief in the reliability of the technical signal, focusing on the apparent hidden bullish divergence and wedge structure seen on recent daily charts.
Outlook remains tied to key technical indicators
As the debate continues among traders and analysts, XRP’s direction remains closely linked to the technical patterns highlighted by Dark Defender. If the hidden bullish divergence and wedge pattern hold true, a significant move could be on the horizon.
