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XRP has recently flashed a "death cross" on its four-hour chart, sparking concerns among traders as uncertainty looms over the broader cryptocurrency market. The death cross, a bearish technical indicator, occurs when the short-term moving average drops below a longer-term moving average, indicating that an asset may face downward pressure. In the case of XRP, the MA 50 has crossed below the MA 200 on the four-hour chart, indicating a "death cross."
The wider crypto market was in the red in the Thursday session, save for a few crypto assets trading in green, with Bitcoin and Ethereum slightly down in the last 24 hours but suffering weekly losses of 6% and 15%, respectively.
Tomiwabold OlajideXRP is down 5.04% in 24 hours, according to CoinMarketCap data. Its price currently stands at $2.41. Zooming out, XRP has lost 22% of its value in the last seven days. According to CoinGlass statistics, open interest for the coin has fallen to a low of $3.67 billion worth of XRP, down drastically from an all-time high of $7.62 billion on Jan. 17.
Mixed signals?
The value of XRP has skyrocketed in recent months. The coin is up 383% yearly, according to CoinGecko data, with most of those gains coming in Q4, 2024. In January, XRP reached a seven-year high of $3.38, driven by market confidence.
Following a major sell-off at the start of the week, net exchange inflows turned positive early Thursday, with over $15 million in XRP transferred to centralized exchanges, according to CoinGlass statistics. Spot inflows to exchanges may indicate a desire to sell tokens on the open market, reducing the likelihood of a rally. This also corresponds with the appearance of a death cross on the four-hour chart.
Although the 200-day SMA is at $1.30, which is lower than the current price, indicating a longer-term bullish trend.
On the upside, immediate resistance is at $2.49, followed by $2.60. A move above these levels would reignite the optimistic outlook, laying the way for a run to the $3 barrier, which it exceeded in January for the first time since 2018. On the other hand, support is expected near $2 if the price continues to fall.
Godfrey Benjamin
Tomiwabold Olajide
Dan Burgin
Vladislav Sopov