XRP, the native token of Ripple’s payment protocol, has recently faced a sharp price correction, alarming traders and analysts alike. The decline follows the emergence of a strong bearish technical pattern, pointing to potential weakness in XRP’s near-term trend.

Bearish Technical Pattern Raises Red Flags

Over the past several trading sessions, XRP has formed what technical analysts call a “death cross”—where the 50-day moving average slips below the 200-day moving average. This indicator is typically seen as a signal of deepening bearish momentum. It suggests that sellers are gaining ground and market sentiment is turning negative.

Following this formation, XRP’s price slipped below a crucial support level that had been holding for weeks. The breakdown confirms the bearish pressure and opens the door to further declines if bulls fail to regain control. Chart watchers are closely following this development, as it may signal a prolonged downtrend for the cryptocurrency.

Market Sentiment and XRP Price Trends

This technical breakdown impacts how both short-term traders and long-term investors perceive XRP‘s outlook. With the “death cross” firmly established, momentum has clearly shifted to the downside, and volume indicators suggest growing selling activity. If XRP fails to quickly reclaim lost ground and reestablish support above key moving averages, the asset’s price could remain under pressure.

Several market observers have pointed out that macroeconomic uncertainty and regulatory developments have also weighed on the broader crypto market. XRP, no stranger to regulatory scrutiny, is more susceptible to negative headlines. This reinforces the significance of technical indicators during uncertain times in the market.

XRP Community Watches Support Levels Closely

Despite the bearish tone, XRP bullish investors continue to watch key support levels for signs of stabilization. A potential bounce from oversold conditions may offer a short-term reprieve, particularly if there is renewed interest or positive news flow from Ripple’s ongoing developments or legal progress.

However, until the token reclaims its previous support and signals a reversal in momentum, many traders will remain cautious. The breakdown of structure on the longer-term charts may render XRP vulnerable to further sell-offs in the absence of strong buying volume.

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

Technical patterns like the ‘death cross’ often influence short-term trader sentiment in crypto markets.