XRP, the fourth-largest cryptocurrency by market capitalization, has formed a significant bearish signal—a death cross—on its hourly chart.
XRP Technical Analysis
The emergence of a death cross, which occurs when a short-term moving average drops below a longer-term moving average, raises concerns among traders. This pattern is generally interpreted as an indicator of potential downward momentum. XRP’s 50-hour moving average has fallen below the 200-hour moving average, completing the death cross formation.
Price Movement and Key Levels
XRP has been experiencing a downturn, extending losses from its March 7 high of $2.62. As of writing, XRP's price stands at $2.15, marking an 8.3% drop in the past 24 hours. With its $2.20 support level failing to hold, a further drop to $2.00 is likely. In a worst-case scenario, a breach below this range could push XRP toward $1.79 or even test the 200-day simple moving average at $1.60.
Market and Investor Outlook
The formation of the death cross highlights ongoing volatility in the cryptocurrency market. However, short-term signals do not always dictate long-term price action. The Relative Strength Index (RSI) is hovering near its midpoint, suggesting that XRP’s price may remain rangebound in the short term. Market participants remain focused on future events and institutional developments that might shift the asset's momentum.
The death cross on XRP's hourly chart suggests potential risks for a price downturn, requiring a cautious approach from traders. Volatility and other market factors may influence XRP's future movements.
