XRP Bullish Divergence Forms as ETF Holdings Rise to $881.25 Million

XRP builds a bullish divergence as price forms lower lows while RSI forms higher lows, indicating strengthening momentum during a controlled downtrend phase.

ETF clients add $12.84 million in fresh XRP exposure, raising total ETF-held assets to $881.25 million during a key technical setup.

A developing momentum structure and rising institutional inflows position XRP near a potential shift as analysts monitor critical breakout confirmation levels.

XRP is showing early signs of market strength as a developing bullish divergence aligns with fresh ETF inflows, adding $12.84 million to total net assets.

Bullish Divergence Emerges After the $2.70 Rejection

XRP’s market structure has shifted since the rejection near $2.70 in late October. ChartNerdTA noted that the asset has been moving inside a downward channel while forming a sequence of lower lows. That pattern has kept short-term sentiment cautious as the price continues to test reduced levels across lower timeframes.

However, momentum indicators are showing a different picture. The RSI has been forming higher lows while the price moves lower, setting up a classic bullish divergence. This structure indicates weakening downside pressure, with sellers finding it harder to extend the trend. The formation also signals that buyers are absorbing more activity during each pullback, suggesting an early shift in market balance.

The divergence continues to build as long as the RSI holds its upward trajectory. Each pullback that keeps the RSI above its earlier trough strengthens the setup. Market participants often monitor this structure closely, as it tends to appear during the later stages of extended sell-offs.

Analysts Track Strengthening Momentum Signals

As the divergence unfolds, attention is turning to potential triggers that may confirm a change in direction. ChartNerdTA outlined several levels that could support momentum recovery if reached. A break above the descending trendline would indicate growing confidence from buyers. Moving beyond that trendline may also attract interest from traders seeking early confirmation.

Another key factor is the RSI’s position relative to the 50 level. A move above that threshold often supports a shift in momentum, especially when it occurs after extended compression. The recovery of the former support zone, described as a major shelf on earlier charts, would also reinforce a transition away from persistent weakness.

While the setup appears constructive, invalidation levels remain important. A breakdown in the RSI structure or a sharp acceleration below the current channel would signal renewed control from sellers. This balance between developing strength and risk markers keeps the pattern under careful observation.

ETF Inflows Add New Dimension to XRP’s Market Setup

Fresh capital entering XRP through ETF products has added a new element to the current market phase. WhaleInsider reported that ETF clients purchased $12.84 million worth of XRP, pushing total ETF-held net assets to $881.25 million. This inflow arrives during a period of technical compression and may provide additional support for market stability.

ETF participation often reflects activity from structured investment accounts that seek exposure during discounted conditions. The timing of new inflows aligns with the bullish divergence, creating a combined narrative of technical and institutional interest. This intersection gives traders a broader view of market positioning as XRP forms a potential base.

With a developing divergence, strengthening RSI structure, and ongoing ETF accumulation, the market is entering a phase watched closely by analysts. The next reactions near trend boundaries may determine whether XRP transitions toward a recovery phase or extends its current drift.

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