XRP, the cryptocurrency associated with Ripple Labs, is under close watch by traders as technical signals suggest a possible shift toward bearish momentum. As of the latest market data, XRP is trading at $2.14, showing a modest 2.64% gain in the past 24 hours. However, it remains down 4.23% on the weekly chart, and traders are now eyeing a potential “death cross” pattern that could influence XRP’s short- to mid-term direction.

What Is a Death Cross—and Why It Matters for XRP

In technical analysis, a “death cross” occurs when a short-term moving average—typically the 50-day simple moving average (SMA)—crosses below a long-term moving average like the 200-day SMA. This crossover often signals a shift in momentum from bullish to bearish and is regarded as a warning sign for a potential price downturn.

Currently, XRP’s 50-day SMA is showing signs of decline, while the 200-day SMA has remained relatively flat. The narrowing gap between these two indicators has caught the attention of traders and analysts, who suggest a crossover could happen within days if the trend continues.

While the death cross does not guarantee a major sell-off, it often indicates weakening investor confidence and fading bullish sentiment. For XRP holders, this could mark the beginning of a period of consolidation or even a bearish trend if not countered by strong support at key levels.

Historical Context: What Past Death Crosses Have Shown

XRP has encountered death cross formations before, most recently in May 2024. That technical event preceded several months of sideways trading before XRP eventually rallied in November of the same year. The pattern is not always a sign of immediate collapse, but it typically coincides with lower volatility and extended consolidation phases.

For long-term traders and institutional investors, these signals are used to adjust positions and manage risk. Given the current market conditions and broader uncertainties in the crypto sector, any bearish technical sign could trigger increased caution or profit-taking.

Key Support and Resistance Levels to Monitor

XRP has been hovering around critical technical levels for several weeks. Since late April, it has struggled to remain above the 50-day SMA, currently located near $2.172. Bulls pushed the token as high as $2.36 on April 28, but it was unable to hold those gains and subsequently dropped back below the moving average.

On the downside, XRP briefly touched the 200-day SMA around $2.07 earlier this month before rebounding. This level is now considered a major line of support, as another drop below it could trigger a broader sell-off, especially if the death cross is confirmed.

According to popular crypto analyst Ali, the most important levels to watch in the near term are $2.00 and $2.26. A decisive move outside this range could signal the beginning of the next major trend—either a continuation of the bullish recovery or the start of a more prolonged bearish period.

Market Sentiment and Broader Outlook

Market sentiment surrounding XRP remains mixed. On one hand, the token has managed to retain its value above the key $2 mark despite recent market volatility. On the other, it has failed to build on previous momentum or establish a firm uptrend.

The broader crypto market has also shown signs of hesitation, with Bitcoin, Ethereum, and other major assets experiencing similar technical patterns and short-term resistance. In such an environment, traders often reduce risk and wait for clearer signals before making major moves.

Volume trends also suggest declining enthusiasm in the short term, although institutional interest in XRP remains notable, particularly in regions where Ripple’s technology is being tested for cross-border payment solutions.

Conclusion: A Decisive Moment for XRP

With XRP trading in a narrow band between $2.00 and $2.26, the market appears to be at a turning point. A confirmed death cross could reinforce bearish expectations and push prices lower in the coming weeks. Conversely, a strong rebound above $2.26 with rising volume might invalidate the bearish setup and reestablish upward momentum.

For now, traders are advised to keep a close eye on key technical levels and monitor any shifts in sentiment. As always, risk management remains crucial in volatile crypto markets, particularly when trading near significant chart signals like the death cross.