The four-hour XRP price chart shows that a death cross occurred for the first time on May 30, and since then, the 50-day simple moving average (SMA) has maintained its downward trend. This demonstrates increasing selling pressure and the absence of a possible bullish reversal, as buyers remain indecisive.
The last time XRP formed a death cross, on March 30, the price plummeted by 23% in one week, reaching a low of $1.67. If this trend repeats, the price of the Ripple token could fall from its current price of $2.18 to $1.68.
The imminent drop below $2 is also facilitated by the appearance of an inverted cup and handle pattern. This suggests that the price of XRP could fall to $1.71 despite the sentiment divergence. However, for such a drop to occur, XRP must first lose the support at $2.06. If this support holds and the price decisively closes above the resistance at $2.20, it could invalidate the bearish outlook of the death cross.
The MACD line suggests that the bearish momentum could weaken, as it formed a buy signal after converging with the signal line. If buyers react to this signal and the 50-day simple moving average (SMA) stops its downward trend and begins to reverse, the bearish momentum represented by the death cross could also weaken.
However, XRP's drop below $2 could also be a good omen for the token. This indicates that XRP traders are likely to buy below $2 or open long positions, as they anticipate a rebound.
