XRP Faces Critical Reversal: Is a Death Cross on the Horizon?

XRP recently surged above the psychological $2 mark, igniting speculation about a possible breakout. However, the asset quickly lost momentum and retraced below the 100-day exponential moving average (EMA). This retracement has cast doubt on the rally’s sustainability, as XRP now trades at $2.11 following a rejection at the 100 EMA level.

A declining volume profile now raises concerns about the strength behind the price movement. Since XRP crossed the $2 level, trading volume has steadily decreased, highlighting the lack of strong buyer participation. This downtrend in volume suggests the rally was more speculative than supported by long-term investment or solid market conviction.

Pre-Death Cross Formation Adds Bearish Pressure

Another warning sign is emerging in the form of a potential pre-death cross. The 50 EMA is on the verge of crossing below the 100 EMA, a signal often associated with a growing bearish sentiment. While not as severe as the traditional 50/200 EMA death cross, this setup still implies weakness in XRP’s short- to midterm trajectory. Historically, similar formations have led to extended consolidation periods.

Source: TradingView

Adding to the bearish outlook, on-chain data reveals a troubling drop in XRP Ledger activity. Since April 13, the number of transactions on the network has sharply declined, nearing zero. This drop is particularly alarming for XRP, a token designed for high transaction throughput and utility in cross-border payments.

Key Support and Resistance Levels in Focus

At present, XRP hovers in a critical zone. Support levels sit around $2.00 and $1.95, offering temporary relief. However, bulls must push the price above the $2.24–$2.25 resistance range with conviction and strong volume to regain control.

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If XRP fails to attract renewed volume and cannot reclaim the 100 EMA, the pre-death cross may confirm a bearish trend continuation. Such a move could further erode market sentiment and solidify downward momentum in the coming sessions.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.