XRP, the fourth largest cryptocurrency by market capitalization, has signaled short-term concerns for traders. A "death cross" has recently appeared on the hourly chart of XRP, indicating that the short-term moving average (usually SMA 50) has crossed below the long-term moving average (SMA 200), a technical signal often associated with bearish momentum.
The death cross on shorter time frames, such as the hourly chart, often indicates bearish pressure in the short term, especially if supported by volume and general market weakness. Traders interpret the hourly death cross as a signal to watch for lower lows or the possibility of retesting recent support levels.
According to data from CoinMarketCap, the 24-hour trading volume of XRP has decreased by 41.52% to $2.55 billion. The market sell-off on Friday, leading to more than $1.16 billion being liquidated, contributed to the reduced trading activity for various cryptocurrency assets as traders sit on the sidelines awaiting the next big move.
What's Next?
The bearish technical pattern occurred after XRP experienced four consecutive days of decline from June 10 to June 13, resulting in a price drop. However, there may be some hope ahead. At the time of writing, XRP is showing signs of a slight recovery, rising 1.79% in the past 24 hours, currently trading at $2.16.
Another positive point is that the impact of the death cross signal on the hourly chart is usually short-lived compared to the daily or weekly time frames. If buying momentum continues to increase, the bearish setup could soon be invalidated.
In this scenario, if the price rises sharply compared to the current level and surpasses the SMA 50 and 200 hourly at $2.16 and $2.22, the price may continue to rise, targeting the next levels of $2.33 and $2.65.
The hourly RSI is slightly above the midpoint of 50, indicating the potential for short-term range trading. Buyers are expected to actively defend the support level at $2, as a break and close below this level could cause XRP to drop to $1.61.
