XRP Death Cross Incoming. Here’s the Significance

A new technical pattern on XRP’s daily chart has become a focal point in the crypto market after Coin Bureau shared an analysis highlighting an approaching Death Cross on the XRP chart. The chart shows the 50-day Simple Moving Average (SMA) nearing a crossover below the 200-day SMA. Although there is notable recovery right now, traders see this formation as a bearish indicator that could signal continued downward pressure in the near term. The chart illustrates XRP trading around the $2.17 level, while the shorter-term 50-day SMA (blue line) trends downward toward the longer-term 200-day SMA (red line). A yellow circle on the chart marks the imminent point of crossover.

Understanding the Death Cross

The Death Cross occurs when a shorter-term moving average, such as the 50-day SMA, crosses below a longer-term average, typically the 200-day SMA. This pattern suggests that short-term momentum has weakened relative to the long-term trend, often interpreted by traders as a sign that selling pressure could dominate.

Historically, the Death Cross has preceded market downturns in various asset classes, though its predictive accuracy is often debated among analysts. In XRP’s case, the crossover comes after a series of lower highs and declining daily closes that began after resistance near the $2.7 region.

The 50-day SMA, which tracks more recent price action, has been declining since mid-October, reflecting persistent weakness. Meanwhile, the 200-day SMA has maintained a slower downward slope, reflecting the broader trend that has been in place for several months.

Where is XRP Going Next?

Coin Bureau has been tracking this death cross for some time, and the chart indicates that XRP has already fallen almost 30% from its October highs, with bears maintaining control of short-term market momentum. The current setup reinforces what many traders view as a continuation of the correction phase that began after a failed breakout attempt earlier in the quarter.

While Coin Bureau did not provide a price target or extended commentary in the post, the chart’s structure implies caution for those anticipating an immediate reversal. The Death Cross alone does not guarantee further losses, but it serves as a warning signal.

Other analysts have predicted a continued downturn for XRP, as the broader crypto market also faces bearish pressure. Until a reversal pattern forms, the digital asset will likely continue this decline, potentially testing crucial support around $2.