Core Insights - XRP price is currently at $1.89, just 1% above a critical breakdown zone, indicating potential risk despite a seemingly calm chart [1] - A recent hidden bullish divergence was observed, where XRP formed a higher low while the Relative Strength Index (RSI) printed a lower low, typically signaling weakening selling pressure [2] - However, after this divergence, XRP's price barely moved higher, indicating that while selling pressure may have slowed, buyer interest did not materialize [3] Market Sentiment - The failure of the bullish divergence is a red flag, suggesting market hesitation rather than strength, indicating a lack of demand rather than a flaw in the signal [4] - The rising wedge structure for XRP suggests a potential 25% downside move if support is broken, with the absence of buyers and a gradual regain of control by sellers [5] Capital Flows - For the first time in weeks, XRP-related ETF products experienced net outflows, totaling approximately $40.5 million for the week ending January 23, indicating a shift in institutional demand [6] - On-chain data supports this trend, showing that the XRP Hodler Net Position Change metric has flattened and begun to decline, with long-term holders controlling 232.1 million XRP on January 20, dropping to about 231.55 million XRP by January 24 [7]