XRP Shows Bullish Divergence on Weekly Chart, Up 5% in 7 Days

After months of stagnant price action, XRP has captured market attention with a 5% gain over the past 7 days as of January 29, 2026, following a bullish divergence signal on the weekly chart. This technical setup, highlighted by a prominent crypto trader on X, suggests weakening selling pressure and potential for a significant rally. The asset’s price currently hovers at $0.58, sparking discussions about a return to all-time highs near $3.40 last seen in January 2018. This development aligns with broader altcoin underperformance, raising questions about whether XRP can lead a delayed recovery.

Price Action Details

XRP’s current price stands at $0.58, reflecting a 2.3% increase in the last 24 hours, a 5.1% rise over 7 days, and a modest 1.8% uptick over the past 30 days, according to data from CoinGecko. Key support lies at $0.52, with resistance at $0.62, levels that have defined its multi-year range since 2018. Trading volume over the past 24 hours reached $1.2 billion, a 15% increase above the 30-day average of $1.04 billion, signaling growing interest. XRP’s market cap now sits at $32.8 billion, maintaining its position among the top 10 cryptocurrencies by capitalization.

Driving Factors

The bullish divergence on XRP’s weekly chart, as noted by crypto trader @CryptoWizard on X, shows higher lows in momentum indicators despite price testing support at $0.52. On-chain data from Ripple’s network indicates a 12% increase in transaction volume over the past month, with daily active addresses rising to 45,000 from 40,000 in December 2025. Whale activity also supports the bullish narrative, with a reported transfer of 50 million XRP worth $29 million to a major exchange wallet on January 28, 2026, per Whale Alert. No major news catalysts emerged this week, but ongoing clarity in Ripple’s legal battle with the SEC continues to bolster long-term sentiment.

Broader Market Context

XRP’s 5.1% weekly gain outperforms Bitcoin’s 3.2% and Ethereum’s 2.8% over the same period, positioning it as a potential altcoin leader in the current cycle, based on data from CoinMarketCap. The altcoin sector remains undervalued compared to DeFi, where total value locked (TVL) stands at $85 billion as of January 2026, up 10% month-over-month, per DefiLlama. The Crypto Fear & Greed Index currently reads 55 (Neutral), reflecting cautious optimism that could favor underperforming assets like XRP. Analyst @AltcoinSherpa predicts a delayed altcoin rally in Q2 2026, citing capital rotation from equities and a weakening US dollar, trends that could benefit XRP if it breaks $0.62 resistance.

Why This Matters for the Market

XRP’s technical setup carries broader implications beyond its own price action, as a breakout could signal the start of an altcoin catch-up phase after months of underperformance relative to Bitcoin’s dominance at 54% as of January 2026. Competitive analysis shows XRP lagging behind newer layer-1 solutions like Solana, which boasts a $72 billion market cap compared to XRP’s $32.8 billion, yet Ripple’s established cross-border payment use case remains a unique value proposition. If momentum sustains, a move above $0.62 could trigger FOMO-driven inflows, potentially mirroring the 2017 rally when XRP surged over 1,000% in under two months. For deeper insights into altcoin trends, check out Crypto News and Protocol News.

Long-Term Implications

The multi-year range between $0.52 and $0.62 has acted as a structural equilibrium for XRP, absorbing selling pressure and replacing short-term speculators with long-term holders since 2018. A confirmed breakout above this range, paired with macro conditions like a declining US dollar (down 3% in January 2026), could position XRP to reclaim higher levels like $1.00 or beyond. While all-time highs near $3.40 remain speculative, the current divergence suggests the market is laying groundwork for a significant shift. Patience is key, but XRP’s setup reflects resilience amid a sidelined altcoin narrative.