XRP Death Cross Alert: Traders Monitor Critical Chart Shift

XRP traders are closely monitoring key technical indicators as a crucial chart formation may soon emerge, signaling potential bearish momentum in the market.

Currently, the focus is on XRP’s short- and long-term moving averages. Analysts are watching the daily 50-day Simple Moving Average (SMA), which has started to decline, moving closer to the 200-day SMA. If the 50-day SMA crosses below the 200-day SMA, this would confirm a technical pattern known as a “death cross”—often seen by investors as a bearish signal indicating a possible extended downturn or sideways trend.

Although the name sounds ominous, a death cross doesn’t guarantee a strong price decline. Instead, it suggests weakening upward momentum. For XRP, this development is particularly significant as the cryptocurrency has recently failed to regain traction past resistance levels near its 50-day SMA.

The last time XRP experienced a death cross was back in May 2024. Following that signal, XRP went through months of sideways trading before eventually breaking out in November of the same year. While historical patterns may not predict future movements with certainty, they do provide helpful context as traders assess the current market landscape.

According to market data, XRP has faced headwinds around the $2.172 level, which corresponds closely with its current 50-day SMA. Despite a brief surge to $2.36 on April 28, the token has since pulled back. That failure to sustain upward momentum has reinforced bearish charts and set off alarms among technical analysts.

In the days that followed, XRP dipped below both SMAs and reached new lows of $2.07, touching near the 200-day SMA, before recovering modestly. As of this writing, XRP has rebounded slightly and is trading around $2.14—up roughly 2.64% over the past 24 hours but still down 4.23% for the week.

Technical analyst Ali notes that two essential XRP levels to watch in this period of uncertainty are $2.00 and $2.26. A significant breakout above or drop below this range could serve as a strong signal for future price direction, either revitalizing bullish momentum or confirming renewed selling pressure.

The death cross pattern’s looming presence, paired with XRP’s recent failure to break through resistance zones, adds gravity to the current situation. However, it’s important for traders to consider other elements beyond just technical indicators. Market sentiment, news developments surrounding Ripple, and broader crypto trends also play pivotal roles in determining price action.

In essence, while the death cross alert has drawn significant attention within the XRP community, it remains only one piece of the puzzle. For those eyeing long-term strategies, these short to medium-term technical signals can inform decisions, but they are most effective when used in combination with fundamental and sentiment analysis.

As XRP hovers at these crucial thresholds, market participants are urged to remain vigilant and adaptive. Whether a consolidation phase or more volatility lies ahead, the coming days will be critical for defining XRP’s next major move.

Chart Reference: XRP/USD Daily Chart, Courtesy: TradingView

Related reading: XRP Just Saved $2 for Itself

Related: Expert Advice: Sell XRP If You’re Confused

Background: XRP Targets $2 as Market Drops, Key Levels to Watch