XRP is trading in a broader bearish structure, but early signs of seller exhaustion are emerging as the $1 level becomes the immediate battleground. The cryptocurrency lost the $1.02-$1.03 support, which now acts as resistance, and is below a descending trendline on the 4-hour chart.
The $1 Battleground
Price action has settled around the psychological $1 mark, with a major demand zone sitting below at $0.88-$0.97. That zone has held multiple times in recent weeks, and traders are watching to see if it gets tested again. On the upside, resistance levels are stacked at $1.11-$1.15, then $1.20, and a larger supply zone at $1.24-$1.29.
The immediate support at $1.02-$1.03 was lost earlier, flipping that area into resistance. Until XRP reclaims that level, the path of least resistance remains lower, but the demand zone below could provide a floor.
RSI Divergence and the Bullish Case
A potential bullish RSI divergence is developing on the 4-hour chart. Price is printing lower lows while the RSI forms higher lows, a classic sign that selling momentum is fading. For this to play out, XRP needs to break above the descending trendline and reclaim the $1.02-$1.03 level. If that happens, the immediate target is $1.06-$1.07, with further upside toward the resistance cluster above.
The divergence is not a reversal signal on its own. It simply suggests that the bearish push is losing steam, and a bounce is possible if buyers step in at the right spot.
The Bearish Scenario
If XRP fails to capitalize on the RSI divergence, the next move could be a drop toward the $0.94-$0.97 support zone. That area has been a magnet for price in the past, and a break below it would open the door to the $0.88 level. The daily structure remains bearish until a reversal is confirmed by reclaiming overhead resistance, so any bounce is still within a larger downtrend.
Traders are watching the $1 level closely. A daily close above $1.02-$1.03 would be the first sign of strength, but the trendline break is the more immediate trigger.
Daily Structure Still Bearish
The daily chart shows no confirmed reversal yet. XRP remains below key moving averages and the descending trendline, and the overhead supply zones are well-defined. Until price reclaims the $1.11-$1.15 area, the bearish structure stays intact. The RSI divergence is a warning sign for sellers, but it needs confirmation from price action.
The next few sessions will be critical. If XRP can break the trendline and hold above $1.02, the short-term bias shifts bullish. If not, the $0.94-$0.97 zone becomes the immediate target.
