XRP faces mounting bearish pressure as a potential “death cross” formation draws closer on its price chart, raising serious concerns about whether bulls can hold the crucial $2 support level before further declines set in.
The “death cross” in technical analysis refers to a bearish signal that occurs when a short-term moving average – typically the 50-day MA – crosses below a long-term moving average like the 200-day MA. While this crossover hasn’t occurred yet for XRP, current price movements suggest it’s imminent. This looming formation is a clear warning of intensifying downward momentum, and it could reinforce already growing pessimism in the market.
The rejection of XRP at the $2.70 resistance level was a significant blow to bullish efforts. This price point has now become a critical ceiling that bulls must reclaim to regain positive momentum. Failing to break through it in recent attempts indicates a loss of buying strength, leaving the asset vulnerable to further declines.
Recent technical indicators provide little reassurance. The Chaikin Money Flow (CMF) index currently sits at -0.06, pointing to sustained capital outflows and heavy selling pressure. Similarly, the Awesome Oscillator has been printing red bars below the zero line for several weeks, confirming the predominance of bearish momentum. Additionally, the Accumulation/Distribution (A/D) indicator has been making lower highs for the past three weeks, a sign that large holders are gradually exiting their positions.
Supporting this narrative, whale activity has been predominantly bearish. Over the past five days, large XRP holders dumped approximately 900,000 tokens into the market. This surge in selling has overwhelmed existing demand, despite a drop in exchange reserves and increased outflows at the start of November. It suggests that the market lacks the strength to absorb continued sell pressure, and this imbalance could drive the price below $2.
If the $2 psychological level fails to hold, the next key support zones lie at $1.90 and $1.61, both of which could come into play if the bearish trend accelerates. These levels represent longer-term horizontal supports, and a breakdown below them would further confirm the bearish market structure.
The moving averages, especially the 50-day and 200-day lines, are commonly followed by traders due to their strong predictive power in trend analysis. The pending crossover of these two lines would not just signal short-term weakness—it could indicate a prolonged bearish phase for XRP.
For bulls, reclaiming the $2.70 resistance is now pivotal. Only a decisive move above this level, accompanied by strong volume, could shift the structure back in favor of buyers. Until then, the path of least resistance remains downward.
From a broader perspective, XRP’s struggles are not isolated. The overall altcoin market has shown signs of stress amid macroeconomic uncertainty, regulatory challenges, and declining investor sentiment. These external factors could further weigh on XRP’s price action in the near term.
Looking ahead, traders and investors should stay alert to the behavior of XRP around the $2 level. A strong bounce with rising volume could suggest that bulls are still active. On the other hand, a clean breakdown with high sell volume may trigger a cascade toward lower support levels.
Another element to watch is market sentiment. Fear and uncertainty are currently dominating the narrative, with social media chatter and search trends reflecting heightened concern about XRP’s future. Sentiment indicators aligned with technical signals often precede large price movements, making them valuable tools for anticipating shifts in market dynamics.
Additionally, regulatory developments involving Ripple Labs and the ongoing legal battle with the SEC continue to cast a shadow over XRP. Any updates—positive or negative—could significantly impact price direction, regardless of technical patterns.
In the short term, XRP remains in a precarious position. With technical indicators flashing red, whale activity showing a clear exit pattern, and key support levels under siege, bulls face an uphill battle. The next few days and weeks will be crucial in determining whether XRP can stabilize or is headed for a deeper correction.