XRP Nears Bearish Death Cross Amid Market Downturn

XRP, the blockchain-based digital asset designed for fast payments, is approaching a significant technical indicator known as the “death cross,” signaling potential bearish movement in the near term.

The broader cryptocurrency market took a cautious turn over the weekend, with markets paying close attention to bitcoin’s critical support level of $88,800. Bitcoin (BTC) declined by 1.5% on Sunday UTC, breaking below an ascending trendline that had previously supported rallies from April 9 and April 20, as per TradingView chart data cited by CoinDesk.

This drop below the upward trendline suggests waning bullish momentum and the possible exhaustion of Bitcoin’s rally which began after dipping below $75,000 earlier in April. The price also slipped beneath the Ichimoku cloud on the hourly chart — a leading momentum indicator — which further supports the bearish outlook. Should prices continue to slide, the market might revisit the $88,800 level, known for halting upward moves on March 24 and April 2. If this support again comes into play, it could determine Bitcoin’s next major move.

If Bitcoin regains momentum and breaks above the Ichimoku cloud once more, it may nullify this bearish setup and renew hopes for a rally towards the much-anticipated $100,000 milestone. However, that scenario remains uncertain given recent weakness.

XRP Approaches Death Cross Formation

Meanwhile, XRP has also shown signs of fading strength. Following a gradual recovery from the April 7 low, XRP failed to maintain its uptrend and has now dipped back below the 50-day simple moving average (SMA) — a commonly watched short-term trend indicator.

Most notably, the 50-day SMA appears set to cross below the 200-day SMA, an event called the “death cross.” This pattern is widely regarded among technical traders as a long-term bearish signal, often associated with accelerating sell pressure.

The pending death cross reflects XRP’s weakness over recent months, particularly since the broader downtrend began taking shape in mid-January. While such a crossover is historically considered ominous, it’s worth noting that its predictive accuracy is not guaranteed. In both the crypto and traditional finance space, the death cross has delivered mixed results — sometimes signaling major downturns, and at other times, proving to be a lagging indicator after most of the selling has already occurred.

Traders and investors should remain attentive to this development and monitor whether XRP consolidates or rebounds in the days ahead. Maintaining support near current levels and reclaiming the 50-day SMA would be early signs of recovery, while confirmation of the death cross may reinforce bearish sentiment.

In the face of shifting technical landscapes for both Bitcoin and XRP, market participants are advised to focus on strong support and resistance levels, while watching for confirmations before making trades. Technical indicators such as SMAs, Ichimoku clouds, and trendlines remain useful tools in the crypto trader’s arsenal, especially in volatile market periods like this.

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

With uncertainty in both price direction and macro conditions, XRP holders should prepare for possible increased volatility as the death cross nears. Though not always a decisive indicator, a death cross often captures the broader inertia of a trend — one that appears to be tilting downward for now.