Technical indicators show weakening momentum with XRP approaching a bearish death cross pattern. Bulls have to protect the two dollars to avoid further falls in prices.
XRP is increasingly experiencing bearish pressure with its 50-day moving average approaching below the 200-day moving average wonkish pattern also referred to as a death cross.
This structure is a common indicator of a possible downward movement that raises the concerns of traders and investors regarding the short-term price course of XRP.
Recent price movement indicates that XRP has a hard time keeping its most important psychological support area of $2.
Any inability to maintain this position can create an invitation to additional losses, which may fall as low as 1.61 according to technical models and previous market trends.
Death Cross: What Lies Beneath the Signal?
A bearish crossover is marked by the death cross, occurring when the short-run 50-day moving average crosses below the long-run 200-day moving average.
This trend is indicative of a declining trend and is followed by additional sell-offs in most cases. The 50-day MA in the case of XRP is at the moment hovering at the periphery of this critical value, indicating that the market is about to test bearish control.
Source – X
Other technical indicators are strengthening the dark view. The Chaikin Money Flow (CMF) value of -0.06 indicates a lot of selling pressure.
In the meantime, the Awesome Oscillator has been steadily showing its red bars, and the decreasing Accumulation/Distribution indicator is evidence of continued bearish momentum.
Large-scale sell-offs have also been a problem for XRP bulls. Recent whale action has relocated around 900,000 tokens in five days, depleting the demand, and putting pressure on the downward trend as exchange reserves shrink and cannot find enough buyers.
Bulls’ Last Stand at $2
The 2-dollar price level has become the battleground between the bulls and the bears. Failure to break through a resistance level of 2.7 previously only increased the bearishness.
Should XRP not be able to retain $2, the further support levels to consider are at approximately $1.9 and 1.61, which may constitute a more profound downturn should the selling pressure increase.
Although the technicals look bleak, some analysts believe that death crosses are not sure sell indicators, but are just warning bells that need other market variables to be confirmed.
Nevertheless, these adverse momentum and whale sell-offs are a superset that creates an optimistic view of the short-term future of XRP.
The post News On XRP: XRP Death Cross Approaches: Bulls Struggle to Save $2 Level appeared first on Live Bitcoin News.