XRP’s recent price action has seen a significant drop over the last 24 hours, adding to its losses from the past week. The cryptocurrency has slipped below the crucial $2.50 support level, which it had been trying to overcome for several weeks. Breaking below this level heightens the risk of a further decline, potentially testing the next support zone between $2.25 and $2.30. The sentiment around XRP has turned more bearish, backed by technical indicators on both the 4-hour and daily charts that suggest a concerning death cross may soon emerge.
Upcoming Death Cross Suggests More Weakness Ahead
What’s particularly worrying for XRP at the moment is the impending formation of a death cross on its 4-hour chart. By examining the price action on TradingView, we see that the 50-day moving average is close to crossing below the 200-day moving average, signaling this bearish pattern. This cross is often perceived as a strong indicator of negative momentum, suggesting the bears might be gaining an upper hand over the bulls. Consequently, this shift could extend the current price decline and lead to further price drops.
If bearish sentiment continues to dominate, XRP’s price could penetrate the minor support levels at $2.30 and $2.25. Failure to hold these supports might drag the price down to $1.91, wiping out gains made in the last two months. Currently, XRP is fighting to maintain important structural formations on the daily chart, and a close below $1.91 could invalidate bullish patterns like pennants and triangles.
XRP/BTC Pair Shows Bearish Patterns Too
In addition to its dollar valuation, XRP’s performance against Bitcoin has recently turned sour. This is notable, considering XRP has been one of the few altcoins that have outpaced Bitcoin this cycle. The XRP/BTC daily chart reveals its price closing below the 50-day moving average for the first time in nearly three months, indicating a trend shift. Coupled with the Relative Strength Index (RSI) trending downward, this adds another layer of concern.
As of now, XRP is trading at $2.43, a decline of 3.26% over the last 24 hours and a more substantial drop of 21.66% over the past week. This downtrend, combined with weakening technical indicators, suggests caution for XRP’s short-term outlook. However, this downward trend might present chances for accumulation.
Should Bitcoin stabilize above $100,000, we could see XRP’s price range between $2.4 and $2.5 become attractive for potential accumulation by investors.
Image sourced from Adobe Stock, chart from Tradingview.com.
