What to Know:
- XRP has confirmed a death cross, signaling a shift in trend momentum.
- Key support levels to watch include $2.20, $2.00, and a high-risk capitulation zone at $1.80.
- A strong catalyst, like ETF approvals or regulatory clarity, is needed to counteract the current downward pressure.
XRP has recently confirmed a death cross pattern, indicating a potential shift in market dynamics. This crossover, where the 50-day moving average falls below the 200-day moving average, suggests medium-term selling pressure is surpassing long-term accumulation. While death crosses don’t always lead to immediate downturns, they often define the directional bias for a period.
The 50-day, 100-day, and 200-day moving averages are converging to create a significant resistance ceiling between $2.55 and $2.60. XRP’s inability to break above this cluster indicates that rallies are being sold off rather than accumulated. This rejection suggests sellers are currently dominating market sentiment.
Should the death cross continue to drive the market lower, three key downside targets become apparent. The first is an immediate support zone at $2.20, where XRP has previously found buyers. A break below this level could lead to a retest of the psychological and structural support at $2.00, a level consistent with prior consolidation periods.
A more significant drop could see XRP testing the $1.80 range, a level not seen since the summer rally, potentially signaling a complete trend reversal. Reaching this high-risk capitulation zone would require a substantial catalyst to shift market sentiment. To counteract the current downward pressure, XRP needs a powerful catalyst, such as ETF approvals, regulatory clarity, or a wider market pivot.
In conclusion, while the death cross pattern presents a bearish outlook for XRP, key support levels remain crucial to monitor. A strong catalyst will be necessary to reverse the current trend and restore bullish momentum.
Source: Original article
