A bullish divergence is forming on the XRP price chart as the token's Relative Strength Index (RSI) rises from oversold territory even as the price hit new local lows around $1.02–$1.06. The pattern suggests selling momentum is fading, and XRP is attempting to consolidate near $1.0914, staying above the psychological $1.00 support level. This technical signal aligns with efforts by Ripple's leadership to correct recent rumors about a potential company shutdown or asset liquidation.
Ripple Leadership Addresses 2020 Crisis
The rumors stemmed from comments by Ripple CEO Brad Garlinghouse at the University of Kansas, where he revealed that in December 2020—when the SEC lawsuit hit—the board briefly considered shutting down the firm and distributing XRP holdings to shareholders. Garlinghouse and co-founder Chris Larsen ultimately decided to fight, spending $150 million in legal fees to keep the company alive.
CTO Emeritus Corrects the Narrative
After media outlets reported the story as a sign of capitulation, Ripple CTO Emeritus David Schwartz pushed back, stating: "I never said Brad seriously considered shutting down the company." He explained that the lawyers they hired at the time unanimously believed Ripple was "doomed and beyond saving" and urged a settlement, while the personal lawsuits against executives were pressure tactics from the SEC. Schwartz's clarification aims to dispel panic among XRP holders.
Market Impact and Technical Outlook
The legal battle has weighed on XRP's global adoption and market share, but the market appears tired of old fears. The combination of a bullish divergence on the chart and Schwartz's direct denial of shutdown rumors could support a period of sustained local consolidation above $1.00. Traders are watching whether XRP can hold current levels and build momentum for a potential rebound.