XRP Shows Death Cross Despite 190% Volume Spike

XRP has emerged as a central focus in the crypto world, especially after Ripple resolved its long-standing legal issue with the U.S. Securities and Exchange Commission (SEC). Despite the positive sentiment around the asset, XRP has recently signaled a bearish pattern known as a death cross, even as its trading volume surged by 190%.

The sudden death cross formation on XRP’s daily chart has caught investors off guard. A death cross occurs when a short-term moving average, such as the 9-day, crosses below a longer-term moving average, like the 26-day. Historically, this technical indicator is viewed as a warning sign that momentum may be shifting toward bearish territory, even when market fundamentals suggest otherwise.

Following the closure of Ripple’s case with the SEC, XRP witnessed a strong rebound. The coin’s value leaped over 10% in the immediate aftermath, breaking free from its extended downward trend. At the time of the latest update, XRP had maintained an impressive 8.32% gain within 24 hours, trading at $3.33.

A closer look at recent performance reveals that XRP has grown by 12.8% over the past week and by a notable 40.13% across the last 30 days. However, these positive metrics have not been enough to prevent the bearish cross between the critical moving averages. This has raised fresh concerns about the coin’s near-term momentum.

Before its recent price breakout, XRP had spent a period consolidating below the $2.90 threshold. During this phase, speculation around whale movements and increasing open interest hinted at a potential recovery. The final push came with the verdict that cleared XRP from being treated as a security, putting to rest long-standing regulatory uncertainty surrounding the token.

This legal clarity has injected fresh optimism into the XRP community. Market participants now believe that XRP has no further regulatory barriers preventing broader institutional involvement or new investment products. This includes the much-anticipated launch of an XRP-based exchange-traded fund (ETF).

Industry voices have begun to weigh in on XRP’s next major catalyst. Nate Geraci, President of ETF Store, expressed confidence that asset management giant BlackRock might soon pursue an XRP ETF filing. With previous regulatory hurdles out of the way, the market is now preparing for further developments in this area. Approval for such a product could open new investor channels and significantly increase XRP’s adoption.

Nevertheless, some analysts advise caution. Despite recent gains and growing mainstream attention, there are no guarantees that XRP will maintain its upward trajectory in the short term. The emergence of a death cross serves as a reminder that technical indicators still carry weight in dictating market sentiment. If XRP fails to regain momentum, its advance could briefly stall.

Still, the long-term outlook shows promise. If Ripple leverages its legal victory and pushes for an ETF approval, XRP is well-positioned to potentially challenge its all-time high of $3.841. Continued high trading volumes and increasing market activity could be crucial in sustaining its upward movement. For now, traders and investors alike remain watchful to see whether XRP builds upon this new chapter in its journey.

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

Despite the conflicting signals from both technical and fundamental perspectives, one thing is clear: XRP’s market behavior is increasingly under the spotlight, and its next move could shape broader crypto sentiment in the months ahead.