The cryptocurrency market is entering a cautious phase, and XRP is no exception. Over the past week, XRP has seen a sharp drop in trading volume, with several technical indicators pointing to potential downside. At the same time, investor sentiment remains uncertain, and a critical date—June 17—may determine what happens next.

Let’s take a closer look at what’s happening with XRP, why the volume is falling, and what the technical charts are telling us.

XRP Sees Uptick, But Is It Just a “Dead Cat Bounce”?

XRP recently bounced from a low of $2.08 to $2.18, a 2.18% increase. While that may seem like good news, analysts suggest this might be what traders call a “dead cat bounce”—a small recovery in price that happens before a further drop.

Although some investors see hope in the recent uptick, trading volume tells a different story. Volume has dropped nearly 49% over the past week. This kind of drop shows that fewer people are trading XRP right now, and low volume often means weak price support.

Technical Warning Signs: Death Cross Appears

One of the most talked-about signals in technical analysis is the “death cross.” This happens when a short-term moving average falls below a long-term moving average—often a sign of a potential downward trend.

For XRP, a death cross just appeared, with the 23-day moving average crossing below the 50-day average. This crossover can signal that sellers are gaining control and that the price could fall further unless strong support returns.

XRP is also currently trading below both its 50-day and 200-day moving averages. These are key levels many traders watch, and staying below them suggests bearish momentum is building.

Triangle Pattern Signals Indecision

Another pattern forming on XRP’s chart is a symmetrical triangle—a shape that often signals indecision in the market. In this pattern, the price forms lower highs and higher lows, creating a tight zone.

This setup means the price could break in either direction. But with low volume and a bearish death cross, there is a stronger risk of a downside breakout unless buyers step in quickly.

XRP ETF Approval Could Be a Game Changer

Despite current concerns, there is one major catalyst that could shift XRP’s outlook: the potential approval of a spot XRP ETF. Investment giant Franklin Templeton has a proposal awaiting a decision from the SEC, with a deadline set for June 17.

If approved, this would be a huge step for XRP. It could bring new institutional money into the token and improve market liquidity. Just like Bitcoin saw a boost from ETF news, XRP could benefit in a similar way.

Still, ETF approval is not guaranteed. Until then, traders remain cautious and focused on short-term risks.

Dubai Greenlights Ripple’s Stablecoin

In a separate development, Ripple recently received regulatory approval in Dubai for its upcoming stablecoin, RLUSD. While this is a long-term positive for the Ripple ecosystem, it hasn’t yet translated into strong price action for XRP.

There was also news that Webus International invested $300 million worth of XRP into its corporate treasury. While notable, this hasn’t been enough to counteract the technical weakness in the market.

What to Watch Next

Traders are closely watching the $2.27 price level. A breakout above this point, with strong trading volume, could push XRP toward $2.50 or even $2.60. But if resistance holds and volume stays low, the price could fall below $2.00 again.

Some analysts believe that XRP is still consolidating and preparing for a bigger move, especially since it has been stuck in a range for more than 200 days. Others think the market is waiting for a catalyst—like the ETF decision or stronger buying activity.

Until then, the current setup shows caution is needed.

Final Thoughts

XRP’s recent bounce is not convincing enough to declare a new rally. With volume falling, technical indicators turning bearish, and resistance levels still intact, short-term risks remain high.

However, XRP has proven resilient in the past. If market conditions improve or the ETF gets approved, it could open the door for a strong move upward.

For now, traders should keep an eye on key support and resistance zones, monitor news around the ETF, and watch how the market reacts over the next week.