What to Know Bullish divergence between XRP price and RSI suggests weakening selling momentum before broader trend confirmation through resistance breakouts. Key resistance zones at $1.30-$1.
Crypto analyst EGRAG CRYPTO has identified a bullish divergence on XRP’s three-day chart, suggesting the cryptocurrency may be nearing the end of its current corrective phase. The analyst believes the technical setup could mark the completion of Elliott Wave 2, although he emphasized that price must still overcome several resistance levels before a Wave 3 rally receives confirmation.
According to EGRAG CRYPTO, XRP has formed a lower low while the Relative Strength Index has produced a higher low. This pattern, known as a bullish divergence, often signals that selling momentum is weakening despite continued pressure on price. Consequently, the analyst believes buyers may be gradually regaining strength as the correction matures.
However, the analysis cautions that momentum indicators alone cannot confirm a trend reversal. Instead, XRP must break above the existing corrective structure before the broader bullish outlook becomes technically valid.
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According to EGRAG CRYPTO, the first important resistance region sits between $1.30 and $1.60. Sustained closes above that range would strengthen the bullish case by showing that buyers have regained control of the market.
Additionally, the chart identifies $1.96 as another significant resistance level. Clearing that barrier would provide further evidence that the correction has likely concluded. Moreover, a move above the $3.00 to $3.60 region would reinforce the argument that a larger impulsive trend has started.
The analyst also highlighted the previous Wave 1 high as the most important technical hurdle. Breaking above that level would provide the clearest confirmation that Wave 3 has begun under the Elliott Wave framework.
#XRP 3-Day Analysis – Wave 3 Setup Is Developing:
The chart is showing a potentially important bullish divergence:
Price is forming a lower low
— EGRAG CRYPTO (@egragcrypto) August 5, 2026
Meanwhile, the chart outlines several support zones that remain critical if XRP experiences another decline before reversing higher. The first major support lies between $1.00 and $0.95. If that area fails to hold, the next support appears near $0.75, followed by a deeper structural region between $0.60 and $0.52.
According to EGRAG CRYPTO, those levels represent areas where buyers could preserve the broader market structure rather than invalidate the long-term bullish outlook. Therefore, additional downside would not necessarily eliminate the possibility of a future recovery.
EGRAG CRYPTO noted that XRP’s previous Wave 1 produced an advance of approximately 1,200%. Under Elliott Wave theory, Wave 3 frequently delivers the strongest and longest price expansion within a five-wave cycle. Based on that historical relationship, the analyst projects a potential gain of roughly 1,900% to 2,000% from the anticipated bottoming region.
Furthermore, the chart presents several Fibonacci extension targets that could come into focus if the bullish structure develops as expected. Those projected levels include $6.42, $13.37, $22.55, $29.63 and $43.83. The analyst described these figures as technical objectives derived from the current wave count rather than guaranteed price outcomes.
The analysis also notes that the bullish divergence serves as an early indication that bearish momentum is fading. Nevertheless, price action must still validate that signal by breaking the corrective pattern and reclaiming major resistance zones before the projected Wave 3 scenario gains stronger technical support.
XRP’s latest technical structure points to weakening downside momentum as a bullish divergence develops on the three-day chart. Even so, the projected Wave 3 scenario remains dependent on price breaking the corrective structure and reclaiming major resistance levels. Until those conditions are met, the long-term targets remain technical projections rather than confirmed market outcomes.
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