XRP is showing signs of weakness after a key technical pattern known as the death cross appeared on its chart. The 23-day moving average has fallen below the 50-day average, indicating growing pressure on the asset’s short-term momentum.
The altcoin is currently trading near $2.24 after a 1.16 percent drop early Monday. This trend continued after bullish activity had been low, and the $2.35 resistance level was not achieved. After hitting $3 earlier this year, the price of XRP has steadily declined.
Feeling no relief in the morning, XRP dropped from $2.27 down to $2.22 and then slowly climbed back to $2.23. Many traders are not confident because they believe the technical signal points to more possible declines. Even though the 200-day moving average is still rising, the death cross signals a possible decline ahead.
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The indicators for today’s market session have again shown that buyers are becoming less interested. The rate of upward movement is slowing because the relative strength index is down, and the signals from the MACD are getting weaker.
If XRP fails to keep above its $2.20 to $2.18 support, it might decrease and settle between $2 and $1.90.
Bearish Cross Could Mark the Start of a Deeper Pullback
The appearance of the death cross often signals a turning point in market sentiment, even if it does not always trigger an immediate selloff. In XRP’s case, it confirms the market’s current indecision and the possibility of further downside.
Charts from TradingView show reduced volume alongside declining short-term averages. This combination has led to cautious sentiment, with traders pulling back from large positions. There are extra concerns that the market is getting ready for another fall due to the poor results in previous rallies.
Should XRP fall beneath the $2.20 mark, it might return to the demand levels it was at earlier in 2021. In the past, the zones between $1.95 and $2 worked as reliable price floors.
The sight of the death cross has drawn traders’ attention to XRP since it suggests it may slide further. Because key support levels are threatened, pressure is still on XRP’s short-term forecast.
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