XRP Pressured by Ugly Death Cross: What's Next? – U.Today

A distinct death cross has formed on XRP’s daily chart, indicating a bearish signal that could eliminate any remaining bullish sentiment in the market. XRP is currently struggling under increasing technical pressure.

XRP gets pressured

A persistent downtrend that had been developing since early October was confirmed when the 50-day moving average crossed below the 200-day mark. This cross indicates a change in long-term momentum, and is not merely decorative. After such formations, XRP has historically seen protracted drawdowns as traders retreat and short-term speculators lose faith.

With downside risk pointing toward the $2.00-$1.90 range if selling pressure picks up speed, the price has already fallen beneath important support near $2.40 and is consolidating around the $2.26 region. A recent breakdown of a descending triangle formation and an unsuccessful attempt to regain the 100-day moving average give the overall structure a bleak appearance.

Not much upside potential

Resistance stacking at every level was further confirmed by the strong rejection of the bearish retest at $2.50. Momentum indicators are obviously leaning bearish, even though the market is not quite oversold yet. The RSI, which is currently close to 40, indicates a lack of strength.

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The death cross and a wider sentiment cooldown across altcoins are the true problems here. Underperforming assets are losing liquidity, and XRP’s fundamentals have not produced a new story to counteract the technical harm. The short-term outlook favors continued weakness unless bulls can reclaim the $2.50-$2.60 zone with convincing volume, even though long-term holders might not be deterred.

What might turn the tide? The bearish setup would be invalidated by a sustained recovery above both the 50-day and 200-day MAs, but that would require fresh interest and catalyst-driven momentum, which are currently lacking. In the absence of that, XRP could continue to decline and even retest mid-2024 levels.

For the time being, the death cross warns that XRP’s recent attempts at a rally might have been dead-cat bounces. The path of least resistance stays downward unless the asset decisively breaks this structure, and any bullish expectations are put on hold until the technicals turn back in favor of the buyers.