- XRP momentum strengthens quietly while price remains trapped in short term decline.
- Technical divergence signals weakening selling pressure beneath continued daily price drops.
- Traders monitor momentum compression as XRP approaches potential structural turning point.
Market attention around XRP has intensified as traders shift focus from declining prices toward strengthening technical signals developing beneath the surface. Despite continued downside pressure on the daily chart, momentum indicators now suggest that selling strength weakens progressively. This shift has reshaped short-term sentiment, especially among traders who prioritize structure over emotional price reactions.
Rather than signaling panic, the current setup reflects a market compressing between fading bearish pressure and emerging internal strength. XRP price action still shows a sequence of lower lows, confirming that the broader trend remains under pressure for now.
However, momentum tells a different story, with the Relative Strength Index forming consistently higher lows. This divergence between price and momentum highlights diminishing selling force despite continued declines.
Such setups often emerge when sellers lose control gradually rather than through sharp reversals. According to analyst ChartNerdTA, this daily bullish divergence continues building, even as price remains capped below resistance.
Technically, a descending trendline and a moving average near $2.10 continue limiting upside attempts. XRP recently traded around $1.95, while downside interest appeared close to $1.85. These levels now act as reference zones rather than decisive breakout points.
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Source: X
Momentum Compression Signals Strength Beneath Weak Structure
Beyond visible price weakness, momentum compression has become the defining feature of the current setup. The RSI continues respecting its rising support line, signaling that bearish momentum loses intensity with each pullback. This behavior often precedes volatility expansion once the price confirms direction.
According to ChartNerdTA, the contrast between higher momentum lows and lower price lows strengthens the signal structure over time. Importantly, divergence alone does not confirm a reversal.
Price must reclaim resistance and form a higher low to validate bullish continuation. A sustained move above descending resistance would shift short-term structure decisively. Until then, traders remain cautious, balancing opportunity with disciplined risk management.
Volume behavior also supports the compression narrative. Trading activity reflects restraint rather than capitulation, aligning more closely with accumulation phases. This environment encourages patience rather than aggressive positioning. Failure remains possible if momentum breaks below its rising support, which would invalidate the bullish structure.
The growing divergence highlights weakening bearish momentum despite persistent price declines. As compression builds, traders remain attentive to confirmation while recognizing that momentum often shifts before price responds.
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