XRP News Today: XRP Faces 10% Drop Risk as Death Cross Looms

XRP is currently at a pivotal technical juncture as it approaches a "death cross" between the 23-day and 200-day moving averages, which is often seen as a bearish indicator. This pattern suggests that the momentum may be shifting away from the bulls, and if confirmed, it could signal a potential decline in XRP's price.

Historical data shows that similar crossovers have previously led to significant price declines. For instance, the last occurrence of this pattern in October 2024 resulted in a swift 10% drop within three trading days, according to COINOTAG analysis. This highlights the risk for XRP holders and underscores the importance of monitoring this development closely.

At present, XRP trades slightly above $2.20, but the market sentiment appears fragile. If the death cross is confirmed in the coming sessions, traders should prepare for a possible retest of the $2 psychological support level, which has historically been a critical price point. This support level is crucial for XRP’s short-term outlook, and a failure to hold this level could lead to deeper declines toward the $1.85 to $1.90 range, a support band established during March’s price action.

Conversely, XRP faces resistance in the $2.26 to $2.32 area, which it must overcome to negate the bearish setup. Failure to break above this resistance cluster may render a breakdown below $2 not only likely but imminent. The declining volume suggests a lack of buying enthusiasm, which could embolden sellers.

Given the technical indicators and historical patterns, traders and investors should exercise caution. The potential confirmation of the death cross could trigger increased volatility and downward pressure on XRP’s price. Risk management strategies, including setting stop-loss orders near critical support levels, may be prudent. Additionally, monitoring volume trends and broader market sentiment will be essential to gauge the strength of any potential rebound or further decline.

In conclusion, XRP’s technical landscape is signaling a possible bearish phase, with the death cross between the 23-day and 200-day moving averages serving as a key warning. Historical precedents reinforce the risk of significant price corrections if this pattern is confirmed. Support near $2 is crucial, and a failure to hold this level could lead to deeper declines toward $1.85-$1.90. Traders should remain vigilant, employing sound risk management while watching for decisive moves above resistance to potentially shift the outlook. Maintaining a disciplined approach will be vital as XRP navigates this critical juncture.