The XRP market outlook remains cautiously optimistic as indicators reveal a short-term slowdown in trading momentum across both the cryptocurrency and traditional financial sectors. This trend reflects broader patterns evident in market breadth data for both XRP and major Nasdaq-listed assets.

Market breadth serves as a valuable metric for understanding the overall performance health of a financial market. Traders commonly evaluate breadth by comparing the number of advancing versus declining assets, and by identifying how many are trading above or below key moving averages—specifically the 50-day and 200-day simple moving averages (SMAs). These technical indicators help highlight both short- and long-term market direction.

How Market Breadth Highlights Current Trends

Recent data from TradingView shows 63 out of the top 100 cryptocurrencies, including XRP, are currently trading above their respective 200-day SMAs. This signals that the long-term trajectory for these assets remains positive. The top 100 coins are typically those with market capitalizations exceeding $1 billion, making them more stable and less vulnerable to artificial price manipulation.

Despite this long-range bullish sentiment, 50 of these same coins are now trading below their 50-day SMAs. The 50-day SMA is a crucial benchmark for identifying short-term trends. When an asset is consistently below this level, it usually suggests weakening momentum or a brewing correction in the near term.

Interestingly, this mirrors the situation in the traditional stock market as well. The Nasdaq 100 index—comprising 100 of the largest non-financial companies listed on the Nasdaq—shows a similar profile. On the same day, 61 of these stocks traded above their 200-day SMA, while 49 fell below their 50-day SMA.

What the 50-Day vs. 200-Day SMA Difference Tells Us

The divergence between the short-term and long-term indicators implies that while investors remain confident in the long-term prospects of both crypto and stock markets, there is noticeable hesitation in the short run. This dip in short-term momentum suggests that traders could be adjusting their risk exposure in anticipation of potential macroeconomic events.

One such key event is the upcoming address by Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium. Speculation around this speech has led to cautious trading behaviors across asset classes, contributing to the softening seen in market breadth.

This shared pattern between cryptocurrency and traditional stocks suggests the market’s short-term volatility isn’t isolated to one sector. Rather, it’s a broader reflection of risk-off sentiment amid economic uncertainty.

XRP trading chart showing a divergence between its 50-day and 200-day moving averages, signaling mixed market momentum.

Why XRP and Broader Markets May Rebound

Although short-term sentiment appears to be waning for XRP and peers, the clear strength seen in the 200-day SMA provides some reassurance for investors. The 200-day average has long been used by both institutional and retail investors as a crucial signal of price stability and long-term growth potential.

Moreover, this market stagnation could merely be a pause in the current upward trend, allowing markets to consolidate and gather strength. The parallel structure in breadth metrics between crypto and the Nasdaq further indicates systemic behavior, rather than a fundamental breakdown of individual assets like XRP.

With XRP maintaining positioning above its 200-day average, long-term holders may see this period as an opportunity to hold or accumulate, pending broader market developments stemming from macroeconomic events such as the Jackson Hole meeting.

Related: XRP Price: $12M Max Pain for Bears

For a deeper look at how XRP, along with Ethereum and Solana, is coping with recent market retracements ahead of Powell’s speech, be sure to read: Crypto Traders Eye Jackson Hole as Ether, XRP, Solana Drop Sharply in Retreat