Hidden Bullish Divergence Points to Potential $5.32 Target for XRP Amid Bitcoin Dominance Shift

XRP’s technical structure is flashing significant signals that could reshape the altcoin’s trajectory. According to prominent market analysis, the cryptocurrency is displaying a hidden bullish divergence on its monthly timeframe—a pattern that typically indicates underlying strength beneath surface weakness. Combined with a critical retest of a seven-year ascending trendline, the confluence suggests XRP could be positioned for its next major expansion phase, particularly if Bitcoin dominance experiences a structural breakdown.

XRP’s Seven-Year Chart Pattern Reveals Hidden Bullish Divergence Signals

The current market setup on XRP draws attention to a long-term technical structure spanning approximately seven years. The chart shows a consistent ascending trendline established around 2019, along which XRP has formed progressively higher support levels through multiple market cycles. Recently, the token retested this critical long-term support, a move that historically has preceded significant rallies.

What makes this setup compelling is the hidden bullish divergence appearing simultaneously on the RSI indicator. Unlike regular divergence where price and momentum move in opposite directions, a hidden bullish divergence occurs when prices establish a higher low while the RSI posts a lower low. This configuration typically signals that despite weaker momentum readings, underlying buying pressure is building—a precursor to renewed uptrend momentum.

The combination of price testing a seven-year support level while hidden bullish divergence forms on monthly timeframes creates what analysts view as a powerful confluence of bullish signals. If confirmed by subsequent price action, this pattern could mark the beginning of XRP’s next major upward cycle.

Path to $5.32: Mapping the 4x Expansion Scenario

Market analysts, including the closely-followed JayDee on X, project that if Bitcoin dominance begins declining meaningfully, XRP could enter a substantial expansion phase. According to the technical analysis, the profit-taking target zone for this projected move lies in what analysts label a “green box”—a designated price range representing the next major resistance level.

From the current technical setup, XRP’s market cap is projected to reach approximately $325 billion. Given XRP’s current market valuation of $86.80 billion with a circulating supply of 61.34 billion tokens, this $325 billion scenario would represent roughly a 4x gain from current levels. Such a market cap expansion would correspond to an XRP price near $5.32—more than 3.7x the current $1.42 trading price.

For context, XRP currently trades roughly 61% below its 2025 peak of $3.66, having declined substantially from those cycle highs. Reaching the projected $5.32 target would not only recover those losses but exceed them by a significant margin, depending on market conditions and timing.

Bitcoin Dominance Shift as the Catalyst for Altcoin Rotation

The activation of this bullish scenario hinges primarily on one macro variable: Bitcoin dominance. Several market analysts maintain that a significant decline in Bitcoin’s market share relative to total cryptocurrency capitalization could trigger a powerful rotation of liquidity into large-cap altcoins like XRP.

This thesis draws from the 2017 bull cycle, when Bitcoin dominance experienced a dramatic structural breakdown. During that period, BTC dominance contracted from roughly 95% to near 37%, while altcoins surged explosively. XRP, in particular, skyrocketed over 70,000% during that cycle, advancing from $0.0055 to $3.84.

The current cycle tells a different story so far. While XRP has climbed more than 600% from its $0.49 starting point to the $3.66 peak, Bitcoin dominance has not yet experienced a comparable structural breakdown. Analysts like Dark Defender suggest that if dominance weakens significantly heading into 2026, a second leg higher powered by altcoin rotation could materialize—similar to the momentum seen in 2017.

Risk Management: The Alternative Pullback Scenario

However, analysts also acknowledge that the bullish hidden bullish divergence setup does not guarantee immediate upside. The market could consolidate or pullback before initiating the larger expansion. Some analysts reference a “pink box” scenario—a potential deeper pullback that would represent what they characterize as a “calculated crash” or final shakeout before the next bull cycle.

The critical nuance here is that even if XRP experiences such a pullback, the hidden bullish divergence on the monthly timeframe would theoretically remain intact, suggesting that the long-term technical configuration continues to favor eventual higher prices. In this view, a pullback would simply represent the final accumulation opportunity before the multi-year expansion begins in earnest.

This dual-scenario framework—immediate upside toward $5.32 or a pullback before that target—reflects how technical traders are managing risk while maintaining bullish bias on the longer-term structure.

Current Market Positioning

As of March 2026, XRP trades near $1.42, reflecting the extended consolidation from its 2025 peaks. Market participants are increasingly focused on whether Bitcoin dominance will weaken structurally, as this variable appears critical to determining which scenario plays out. For now, the hidden bullish divergence on the monthly chart remains a key signal that traders are watching closely—a technical pattern that, if validated, could mark the beginning of XRP’s next major wealth-creation phase.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed represent technical analysis perspectives and do not constitute investment recommendations. Readers are encouraged to conduct thorough research and consult qualified financial advisors before making investment decisions.