XRP’s daily chart has formed a death cross, signaling potential bearish trends. The price has fallen below key support levels, with downside risk pointing towards $1.90-$2.00. A sustained recovery above the 50-day and 200-day moving averages is needed to invalidate the bearish setup.
What to Know:
- XRP’s daily chart has formed a death cross, signaling potential bearish trends.
- The price has fallen below key support levels, with downside risk pointing towards $1.90-$2.00.
- A sustained recovery above the 50-day and 200-day moving averages is needed to invalidate the bearish setup.
XRP is facing increasing technical pressure as a death cross has formed on its daily chart, potentially eliminating bullish sentiment. The formation indicates a shift in long-term momentum, historically leading to drawdowns as traders retreat. Currently consolidating around $2.26, XRP’s price has already fallen below crucial support near $2.40.
The 50-day moving average crossing below the 200-day mark confirms a downtrend that has been developing since early October. This crossover is a significant indicator, often resulting in extended declines as short-term speculators lose confidence. The price faces downside risk, potentially reaching the $1.90-$2.00 range if selling pressure intensifies.
Resistance is building at every level, exemplified by the rejection of the bearish retest at $2.50. Momentum indicators currently lean bearish, with the RSI near 40, indicating a lack of strength. The death cross, combined with a broader cooldown in altcoin sentiment, poses significant challenges for XRP.
To reverse the bearish trend, a sustained recovery above both the 50-day and 200-day moving averages is essential. This would require renewed interest and catalyst-driven momentum, which are currently absent. Without this, XRP may continue its decline, potentially retesting levels seen in mid-2024.
The death cross serves as a warning that recent rally attempts by XRP might be short-lived. The path of least resistance remains downward unless the asset decisively breaks this structure. Investors should remain cautious and monitor technical indicators closely for any signs of a potential turnaround.
Related: XRP Price: $12M Max Pain for Bears
Source: Original article
Quick Summary
XRP’s daily chart has formed a death cross, signaling potential bearish trends. The price has fallen below key support levels, with downside risk pointing towards $1.90-$2.00. A sustained recovery above the 50-day and 200-day moving averages is needed to invalidate the bearish setup.
Source
Information sourced from official Ripple publications, institutional research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP daily.
Editorial Note
Opinions are the author's alone and for informational purposes only. This publication does not provide investment advice.
