XRP is nearing a critical juncture as technical indicators suggest a potential death cross. This bearish signal occurs when the 50-day and 200-day exponential moving averages (EMAs) cross paths, with the shorter-term average falling below the longer-term one. This crossover often signals a prolonged downward trend in the market, and XRP seems to be on the verge of experiencing it.
Missed Opportunity for a Bullish Breakout
Despite an earlier bullish breakout attempt from a symmetrical triangle pattern, XRP failed to capitalize on the momentum. This could have pushed the cryptocurrency’s price higher, but instead, the asset experienced a notable breakdown.
Related article: XRP: Golden Cross or Death Cross Looms?
As a result, both the 50-day and 200-day EMAs are now pointing downward, indicating growing bearish pressure on XRP. In recent trading sessions, XRP has faced significant selling pressure, with little buying support to counteract it. This surge in selling volume has contributed to the downward trend, and XRP is currently trading near $0.54.
XRP/USDT Chart Source: TradingView
This price point is crucial, as it aligns closely with the 100-day EMA, which is trending downward. If XRP fails to break above this resistance, it could signal further market weakness and a potential decline in the asset’s value.
Critical Support Levels: $0.50 and $0.46
A key support level for XRP stands at $0.50. If the price drops below this psychological barrier, it could accelerate the bearish trend and place additional pressure on sellers.
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Failing to maintain this level may lead to a rapid decline toward the next significant support at $0.46. This lower level of historical support would indicate a more severe correction for XRP, reinforcing traders’ expectations of a long-term bearish trend.
With the looming death cross, the cryptocurrency could face even greater downside pressure in the near future, signaling a challenging period ahead for XRP.
