XRP ‘Death Cross’ Approaches – Can Bulls Protect the $2 Mark Before a Deeper Decline?

The impending XRP ‘death cross’ indicates a bearish trend as two long-term moving averages are set to cross. This hasn't happened yet, but it's likely if current price declines continue.
Current indicators suggest significant bearish market pressure, as the price might drop to $2, and potentially as low as $1.61 if this support fails.
Ripple [XRP] whales have been selling off their tokens, with 900,000 XRP being offloaded within just five days, increasing downward pressure on prices.
A decrease in both Exchange Reserves and outflows from exchanges at the start of November indicates a lack of demand sufficient to counter the recent selling frenzy.
XRP’s failure to surpass the crucial $2.7 resistance level strengthens the bearish outlook, possibly leading to increased investor anxiety.

Key Takeaways

The impending XRP ‘death cross’ indicates a bearish trend as two long-term moving averages are set to cross. This hasn't happened yet, but it's likely if current price declines continue.
Current indicators suggest significant bearish market pressure, as the price might drop to $2, and potentially as low as $1.61 if this support fails.
Ripple [XRP] whales have been selling off their tokens, with 900,000 XRP being offloaded within just five days, increasing downward pressure on prices.
A decrease in both Exchange Reserves and outflows from exchanges at the start of November indicates a lack of demand sufficient to counter the recent selling frenzy.
XRP’s failure to surpass the crucial $2.7 resistance level strengthens the bearish outlook, possibly leading to increased investor anxiety.

XRP nears death cross threatens to send prices plummeting below $2

Understanding the XRP ‘Death Cross’

XRP 1-day Chart source: XRP/USDT on TradingView

Moving Averages (MA) are fundamental tools in technical analysis that traders use to gauge market trends. Among various periods, the 50-day and 200-day MAs are especially significant as they often draw attention from analysts and media.

A ‘death cross’ occurs when the 50-day moving average falls below the 200-day moving average, indicating potential bearish momentum. Presently, the 50-day moving average is nearing a drop below the 200-day MA, which is the core of the XRP ‘death cross.’

As of now, the Chaikin Money Flow (CMF) stands at -0.06, illustrating significant selling pressure on XRP. Additionally, the Awesome Oscillator's red bars indicate that bearish momentum has been gaining strength lately, remaining below the zero line for nearly a month and demonstrating stable downward trends.

The Accumulation/Distribution (A/D) indicator shows a pattern of lower highs over the past three weeks, indicating a steady decline, further reinforcing bearish signals.

Overall, it appears likely that XRP may drop to the psychological threshold of $2, or possibly even lower. Key levels to monitor include $2, $1.9, and $1.61 on the downside. Conversely, bulls need to overcome the $2.7 swing high to change the market structure favorably.

Disclaimer: The information shared is for informational purposes only and does not constitute financial, investment, or trading advice.