XRP Completes Death Cross on Three Charts, Is It Concerning?

XRP has completed a death cross across three time frames, sparking concerns about its price action.

On the XRP two-hour, three-hour and four-hour charts, a concerning signal in the form of a death cross has appeared.

A death cross occurs when a short-term moving average, such as the 50 MA, falls below a long-term MA 200, and it has appeared on the XRP short-term charts, indicating dwindling momentum.

This follows a recent death cross on the hourly chart, with the other three signals on the two-, three- and four-hour charts, marking the fourth such occurrence this week.

XRP has steadily declined since reaching a high of $3.10 on Oct. 2. After whipsaw price action, which included a sharp drop on Tuesday, XRP fell to a low of $2.773 on Oct. 9 before slightly rebounding.

At press time, XRP was trading up 0.83% in the last 24 hours to $2.83, down 6.85% weekly.

Is it concerning?

The appearance of four death cross signals across XRP short term time frames this week coincides with the current bearish sentiment toward XRP.

This week, on-chain analytics platform Santiment noted that XRP is seeing its highest level of retail FUD in six months, leading to more bearish comments than bullish. According to Santiment, given that the markets move opposite to retail expectations, this might present as a "promising buy signal."

XRP's recent price drop comes amid profit-taking on the broader crypto market, as the U.S. government shutdown lingers.

If XRP and the broader crypto market show recovery indications in coming sessions, the recent XRP death cross patterns might serve as an oversold signal. If this happens, XRP would aim for the $3 range once again.