When price makes a lower low, but momentum refuses to follow, as the RSI is clearly showing on the XRP daily chart right now, it tells traders that the selling pressure behind each leg lower is weakening. The Bears are still in control on paper, but they’re running out of fuel.
This is exactly what unfolded in the February lows. Price crashed to the $1.13 range in a capitulation flush; the RSI fell into oversold territory below 25. However, the price action is now beginning to stabilize and consolidate between roughly $1.34 and $1.40, but this hasn’t led to the creation of higher highs.
However, RSI shows momentum and is beginning to quietly recover to build a higher low. That divergence is now confirmed on the daily timeframe with the start of the new week.
Why $1.34 Is The Level Bulls Cannot Afford To Lose
