On August 20, the cryptocurrency market experienced turbulence again, with the price of XRP falling by 5% to $2.89 within 24 hours. On the surface, this seems to be just another reflection of market fluctuations. However, from a more macro perspective, the current price trend may indicate the development direction of XRP in the coming weeks and even months.

Recently, technical analysis experts have issued warnings. A typical bearish signal has appeared on the weekly chart - a bearish divergence. Although the XRP price continues to hit new highs, the relative strength index (RSI) shows a downward trend. This divergence between price and momentum indicators usually indicates that the upward momentum is weakening.

It is worth noting that the last time a similar trend occurred was at the end of 2020, after which XRP experienced a months-long adjustment period. Although XRP is still performing strongly at the moment, its upward momentum is gradually weakening from a deeper perspective.

Analysts point out that this signal does not mean that XRP will immediately collapse, but it does increase the possibility of a significant pullback occurring in September and October of this year. Investors should fully consider this potential risk when making decisions.

There are still divergent views in the market regarding the long-term development prospects of XRP. Some analysts believe that the current technical indicators may signal a healthy adjustment period, which would actually be beneficial for the long-term stable growth of XRP. However, other experts are concerned that if the retracement is too large, it could undermine investor confidence and subsequently affect the sentiment of the entire encryption market.

In any case, in the current complex and ever-changing market environment, investors should remain vigilant, closely monitor market trends, and make informed investment decisions based on their own risk tolerance.