XRP Bounces Near Key Support as RSI Divergence Hints at Possible Stabilization

XRP has retreated to $1.80, marking a 5.6% decline over the past 24 hours from earlier highs of $1.93. Yet beneath this surface weakness lies a potentially significant technical signal: a bullish RSI divergence that suggests the selling pressure may be approaching exhaustion. As the token consolidates between critical support at $1.90 and formidable resistance at $1.97–$2.00, this divergence setup offers traders an important clue about what might come next.

The RSI Divergence Setup—What It Signals

On the daily timeframe, XRP has printed a textbook example of RSI divergence. While the token has made slightly lower price lows near $1.80–$1.90, the Relative Strength Index has simultaneously traced higher lows—a disconnect that historically precedes relief rallies. This positive divergence between momentum and price action is precisely the kind of signal that can mark a turning point, though it carries no guarantee of immediate reversal.

The presence of this RSI divergence matters because it reveals something important about market psychology: fresh selling is not driving these lower prices; instead, existing sellers are simply taking profits from previous positions. This distinction is crucial. When RSI divergence appears alongside substantial buying interest near support levels, it often signals that the market is consolidating rather than capitulating.

Support at $1.90, Resistance at $1.97–$2.00

XRP’s technical structure has become increasingly defined. The $1.90 zone has functioned as a resilient support band, with buyers stepping in multiple times over recent sessions to prevent deeper declines. From a structural perspective, this level now carries significant weight for traders—a breakdown below it would invalidate the bullish divergence setup and open the door to a retest of $1.78–$1.80 or lower.

On the flipside, the $1.97–$2.00 resistance zone continues to act as formidable overhead supply. This band has rejected XRP’s advances repeatedly since early January, and traders have made it clear through their selling that breaking cleanly above $2.00 represents a major hurdle. Heavy volume appearing on dips toward $1.90 has helped stabilize price, but the repeated failures near $1.97–$2.00 underscore just how contested this area remains.

Market Context and Institutional Backdrop

XRP’s current consolidation unfolds against a backdrop of divided investor interests. Spot XRP exchange-traded funds continue showing steady inflows, while exchange balances remain near multi-year lows—a combination that has historically supported price rebounds but has not yet materialized into sustained buying pressure. Institutional interest appears present but not dominant, leaving the market vulnerable to positioning flows and short-term sentiment swings.

Broader crypto markets add another layer of complexity. Bitcoin and ether have struggled to build meaningful follow-through after the early-year rally, creating an environment where risk appetite remains uneven. In this sideways-moving backdrop, XRP has become particularly sensitive to short-term flows, with traders frequently selling into strength rather than chasing breakouts higher.

What Traders Need to Watch

For now, XRP remains trapped in consolidation mode, and the RSI divergence setup does not change that fundamental reality—it merely increases the probability of a short-term bounce. If the $1.90 support continues to hold and the divergence signal strengthens, traders may see a move back toward $1.97–$2.00. A clean break and daily close above $2.00 would represent the first meaningful sign that sellers are losing control of price action.

Conversely, if $1.90 gives way, the technical structure deteriorates quickly, opening exposure to $1.78–$1.80 and potentially lower demand areas. Until price decisively breaks out of the current range, traders should treat rallies as tactical selling opportunities and dips as potential entry points—a range-bound playbook that will persist as long as neither support nor resistance definitively breaks. The RSI divergence may be flashing a yellow light, but it will take a decisive price move to turn that into a green light for sustained directional momentum.