XRP Faces Critical Decision Point: Analysts Predict Hidden Divergence or Catalyst for $5.32 Target

Tech analyst JayDee recently posted an in-depth analysis of XRP on social media, pointing out a key hidden divergence signal in the current chart, combined with a rebound off a 7-year support line. This combination could indicate XRP is about to enter a new bullish cycle. According to his framework, if Bitcoin’s dominance declines significantly, XRP could make a major breakout.

How Hidden Divergence and Long-Term Support Signal Strength

On XRP’s monthly chart, a critical technical phenomenon appears: an upward trendline extending from around 2019 is now serving as strong support for XRP. In recent weeks, XRP has confirmed support at this 7-year trendline, while the RSI indicator shows signs of hidden divergence.

What is hidden divergence? Simply put, it describes a mismatch between price action and technical indicators. In this case, XRP made a new high, but RSI formed a lower low — a “price high, indicator low” divergence. Professional traders see this as a sign of underlying strength, indicating that although the market seems to lack momentum on the surface, it is actually building energy for an upward move.

Bitcoin Dominance: The Key Variable Changing XRP’s Fate

JayDee emphasizes that the real trigger for XRP’s upside potential depends on a macro factor — a decline in Bitcoin’s dominance. When Bitcoin’s share of the total crypto market drops from current levels, it often triggers capital flow into other cryptocurrencies, known as the “altcoin season.”

This view aligns with other seasoned analysts. Dark Defender recently noted that if Bitcoin’s dominance experiences a structural decline similar to 2017 in 2026, it could give large-cap coins like XRP a second surge. Back then, Bitcoin dominance fell from 95% to 37%, while XRP surged over 70,000%, from $0.0055 to $3.84.

The $5.32 Target and Market Cap Logic

Based on JayDee’s calculations, if XRP reaches his predicted “green box” zone in this cycle, its market cap would approach $32.5 billion. Currently, with a market cap of $8.84 billion, this implies nearly a 4x increase.

With the current circulating supply of 61.34 billion tokens, a market cap of $32.5 billion corresponds to a price of about $5.32. Compared to XRP’s all-time high of $3.66 in 2025, there’s room for further upside. The current price is $1.44, down over 60% from that peak.

If the Market Doesn’t Play Out as Expected: Alternatives and Long-Term Opportunities

JayDee remains pragmatic, noting XRP could face a “pink box” scenario — a deeper correction. He describes this as a “calculated crash,” which could become a prime accumulation zone in the next long cycle.

Even with this downside risk, he emphasizes that the hidden divergence signal remains valid. This means that whether XRP breaks out immediately or first undergoes a significant retracement, the long-term upside potential remains intact. In other words, this opportunity might materialize in the current cycle or be delayed to the next, but the fundamental support remains solid.

Lessons from Past Cycles: What 2017 Taught Us

The current market environment resembles 2017. Back then, a sharp decline in Bitcoin’s dominance triggered a massive altcoin rally. XRP, as a star coin at the time, achieved a miraculous rise from $0.0055 to $3.84 within six months.

In this cycle, XRP has already surged from $0.49 to $3.66 — a 600% increase. If a new decline in Bitcoin dominance occurs, historical patterns suggest large-cap coins could enter a new growth phase. Dark Defender believes this liquidity reallocation is most likely to start around 2026.

What Market Participants Are Waiting For

For XRP holders and observers, the current situation is full of uncertainty and opportunity. Bitcoin dominance remains the key market indicator — it will determine whether capital shifts into altcoins.

Meanwhile, the hidden divergence signal on the monthly chart remains valid, indicating a technical foundation for upward movement. Whether XRP breaks out immediately or needs to retrace first, this signal continues to send a message of “strength not yet exhausted.” Many market participants are assessing their positions and waiting for a macro turning point.