XRP Price Analysis: Recent Decline Spurs Bearish Outlook
In the last 24 hours, XRP has experienced a notable price drop, extending its losses over the past week. This decline has resulted in the asset falling below a crucial support level at $2.50, a threshold it had struggled to surpass in recent weeks. The break below this level raises concerns about a potential further decline, possibly pushing the price down to test the next key support zone between $2.25 and $2.30. This bearish sentiment is compounded by technical analysis from both the 4-hour and daily charts, which suggest an impending death cross.
Impending Death Cross Signals Potential Continued Weakness
One of the most concerning developments for XRP is the upcoming formation of a death cross on the 4-hour chart. Analysis from TradingView indicates that the 50-day moving average (MA) is on the verge of crossing below the 200-day MA. Such a crossover is often interpreted as a bearish signal, indicating a shift in momentum favoring sellers. This suggests that the current battle between bears and bulls may be leaning towards the bears, possibly extending the ongoing price decline and leading to another significant price drop.
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If bearish momentum continues, XRP might breach minor support levels at $2.30 and $2.25. Failure to hold these levels could see the price drop to $1.91, effectively wiping out gains made in the past two months. The altcoin is currently grappling to maintain crucial structural patterns on the daily chart. A price close below $1.91 could invalidate bullish formations such as pennants and triangles.
Bearish Trends in XRP/BTC Pair
In addition to its performance against the US dollar, XRP’s pairing with Bitcoin has also shown bearish trends. This is significant, given that XRP has been one of the few assets to outperform Bitcoin in this cycle. The daily XRP/BTC chart reveals that XRP has closed below its 50-day MA for the first time in nearly three months. This trend shift is further confirmed by the Relative Strength Index (RSI), which is trending downwards.
Currently, XRP is trading at $2.43, reflecting a 3.26% decrease over the past 24 hours and a more substantial 21.66% decline over the past week. These losses, combined with weakening technical indicators, suggest a cautious outlook for XRP in the near term. However, the ongoing dip may present potential accumulation opportunities for investors.
If Bitcoin’s price stabilizes above $100,000, this dip could trigger renewed buying interest in the $2.4 to $2.5 range.
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