XRP Faces Potential Downturn with Imminent Death Cross

XRP Approaches 'Death Cross' Signaling Possible Downturn

XRP, the cryptocurrency used by Ripple for cross-border transactions, has experienced a 6% drop within the last 24 hours. Currently trading at $2.2742, it is nearing the lower boundary of its three-week trading range between $2.20 and $2.70.

Imminent Death Cross

The token is on the verge of forming a bearish technical pattern known as a 'death cross'. This occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA, a pattern not seen since May. Typically, a death cross indicates weakening short-term momentum compared to the longer-term trend, often preceding extended declines.

Market Sentiment

While the death cross alone is not always a definitive indicator, its presence amid broader market challenges, including Bitcoin's recent struggles, contributes to cautious sentiment surrounding XRP. Additionally, the MACD histogram on XRP's daily chart suggests a potential bearish crossover, indicating a renewed shift in negative momentum.