XRP Affected by Short-Term Death Cross: What Will Happen Next?

XRP, the fourth largest cryptocurrency by market capitalization, has sent a short term signal that has traders worried. A "death cross" has recently appeared on the hourly chart of XRP, indicating that the short term moving average (, typically SMA 50), has crossed below the long term moving average ( SMA 200), a technical signal often associated with bearish momentum.

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 the overall weakness of the market. Traders interpret the hourly death cross as a signal to watch for lower lows or the potential to retest recent support levels. According to data from CoinMarketCap, the 24-hour trading volume of XRP has fallen by 41.52% to $2.55 billion. The market sell-off on Friday, which led to over $1.16 billion being liquidated, contributed to a decrease in trading activity for many different cryptocurrencies as traders sit on the sidelines waiting for the next big move. What Comes Next? The bearish technical pattern occurred after XRP experienced four consecutive days of decline from June 10 to June 13, causing the price to fall. However, there may be some hope ahead. At the time of writing, XRP is showing signs of slight recovery, increasing by 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 term compared to the daily or weekly time frame. If buying momentum continues to rise, the bearish setup may 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, heading towards the next levels of $2.33 and $2.65. The hourly RSI is slightly above the midpoint of 50, indicating the potential for trading within a short term range. Buyers are expected to actively defend the support level of 2 dollars, as a break and close below this level could lead XRP to fall to 1.61 dollars.