XRP’s price action has taken a sharp downturn in the past 24 hours to extend its seven-day losses. Notably, this downturn has seen the asset slipping below a critical support level at $2.50 after weeks of intense work to break above it. This break below $2.50 opens the risk of a continued fall to retest the following key support range between $2.25 and $2.30. Notably, the bearish sentiment surrounding the asset is further reinforced by technical analysis of the 4-hour and daily charts indicating a looming death cross.
Death Cross Looms, Signaling Further Weakness
One of the most alarming developments for XRP is the imminent formation of a death cross on the 4-hour chart. This death cross is revealed through an analysis of the price chart on the TradingView platform, which shows that the 50-day moving average is on the verge of crossing below the 200-day moving average.
The crossover of the 50-day MA below the 200-day MA is widely viewed as a bearish signal, as it suggests that momentum is shifting in favor of the bears. What this means is that the ongoing power tussle between the bears and the bulls might now be falling in the way of the bears, which might fully extend the ongoing price decline and cause another price crash.
Should the bears persist in their dominance, the price of XRP could potentially breach the minor support levels at $2.30 and $2.25. If this level fails to hold, it may drop to $1.91 and essentially erase all of its gains in the past two months. The altcoin is now struggling to maintain key structural patterns on the daily chart, and a price close below $1.91 could cause the invalidation of bullish pennants and triangles.
XRP/BTC Pair Also Flashes Bearish Signals
Beyond the USD pair, XRP’s performance against Bitcoin has also turned negative. This is important, considering the altcoin is one of the few assets that have managed to outperform Bitcoin this cycle. The XRP/BTC daily chart shows that XRP has closed below its 50-day MA for the first time in nearly three months. This signals a shift in trend and an additional confirmation from the Relative Strength Index (RSI), which is now in a downtrend.
At the time of writing, XRP is trading at $2.43, down by 3.26% over the past 24 hours and a steeper 21.66% over the past week. These losses, coupled with the weakening technical indicators, paint a cautious outlook for the altcoin in the near term. However, the ongoing dip could open up potential accumulation opportunities for investors.
If Bitcoin’s price movement stabilizes above $100,000, the ongoing dip could trigger renewed accumulation between $2.4 and $2.5.
Featured image from Adobe Stock, chart from Tradingview.com
