Is $5 Still Possible for XRP? Hidden Divergence Signals a Possible Squeeze!

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Key points:

  • Hidden bullish divergence on the XRP charts could finally give the bulls a little breather. 💪

  • Over $695 million in XRP shorts might be about to meet their doom if prices decide to play nice. 😈

XRP (XRP) is giving off some seriously déjà vu vibes with a technical pattern that’s made a comeback, and let’s just say, it’s been known to lead to sharp price rebounds. If you’ve been living under a crypto rock, hidden bullish divergence is basically a sign that things could be getting a bit better-at least in the short term. Hold on, bulls!

XRP bulls still dream of $5 despite the recent plunge

The three-day chart for XRP is showing something called a “hidden bullish divergence,” which, in non-financial jargon, means that the price is making higher lows, while the relative strength index (RSI) is doing the exact opposite-making lower lows. And according to most chart whisperers, this pattern means the downside is losing steam. Hooray for the bulls, right?

Now, here’s where it gets interesting: this isn’t the first time XRP’s pulled this trick. Oh no. In early 2022, this pattern led to a hefty 69% price bounce-before the inevitable crash back to earth. And again, in late 2023-early 2024, a similar divergence saw a 49% rally, but… we all know how that went. No lasting glory here, folks. 🤷‍♀️

So, yeah, XRP can definitely bounce back after these hidden signals, but don’t get too comfy. These rallies are usually short-lived. It’s like having a sugar rush, only for the crash to hit right after. XRP dropped a whopping 11.95% in the last 24 hours, hitting $2.229-ouch! 😱

As Guy on the Earth (not his real name, don’t worry) puts it: “I’d be hoping to hold this range and spring back as the week goes on, but right now, the bias is still bearish. Sorry to burst your bubble.”

“$2.20 is next support with the 2025 major support between $1.90 and $2 if we lose this range.”

The support levels line up with XRP’s symmetrical triangle thingy (yes, technical term). Bottom line? If this puppy breaks out, we’re looking at $5 and a potential 115% gain from current prices. Someone call the bulls! 🐂💥

But don’t get too ahead of yourselves-this whole setup is just a prelude to the real action. XRP’s making us all wait for that breakout.

Over $695 million in XRP shorts at risk. Time to panic?

Let’s talk dirty-well, dirty in the form of derivatives. XRP is showing a major imbalance between long and short positions. As of Tuesday, shorts on XRP totaled more than $695 million, with long positions barely scraping $32.1 million. It’s like a seesaw with shorts on one side and barely any longs to hold the other up.

And here’s the juicy bit: most of the short positions are hanging around $2.60 to $3.50. So, if XRP even decides to have a little rebound into that range, well, you can bet your bottom dollar that we’re about to see a short squeeze. 😜 Talk about chaos. Meanwhile, the long-side liquidity? Yeah, that’s already been flushed out during October’s correction. Bye-bye, longs.

So what does this all mean? Well, the downside risk for XRP might be limited for the time being, while the potential for upside volatility? Oh, it could get pretty wild if the price climbs into that short-heavy zone. Hold onto your hats! 🎩⚡️

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2025-11-04 17:29