XRP Price Action Hovers at Critical Support

XRP is currently testing the nerves of traders as its price action approaches a make-or-break horizontal support level. 

At the same time, a key technical indicator is flashing a signal that could point to an impending reversal.

Coupled with strong retail accumulation, XRP finds itself in a rather peculiar spot. 

Critical support and bullish divergence 

The asset has been in a localized downtrend over the past few days. The price steadily declined from the $1.44 range on March 21, sliding down to test critical horizontal support just below the $1.38 mark by March 23.

However, the RSI indicator at the bottom of the chart has formed a distinct sequence of higher lows while the price has formed a series of lower lows. The indicator has now climbed out of the oversold territory (the 20-30 range). 

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This discrepancy between the price of the Ripple-linked cryptocurrency and the momentum oscillator creates a classic bullish divergence. 

This might mean that the cryptocurrency’s underlying selling pressure is actually weakening. 

Strong retail demand 

According to a recent market report from 10x Research, XRP is defying broader institutional trends by riding a wave of “strong retail demand” and expanding network utility.

Institutional money is heavily favoring other major layer-1 networks. XRP ETFs, for instance, saw a meager $0.6 million in positive flows.

However, according to blockchain analytics firm Santiment, the XRP Ledger recently surpassed 5.6 million wallets holding under 100 XRP. 

It is also worth noting that XRP spot ETFs have performed relatively well overall. 

Total net assets across all providers sit just above the $1 billion threshold, representing approximately 1.14% of the total XRP market capitalization, SoSoValue data shows.