XRP Death Cross: What’s Next for XRP?

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