XRP price has come under intense pressure in the past few months as any signs of recovery met substantial resistance. Ripple token dropped to $2.46, down sharply from the year-to-date high. So, what next for the token as a death cross nears?
XRP Price Technical Analysis as a Death Cross nears
The daily timeframe chart shows that the Ripple price has remained under pressure in the past few months. It has plunged by over 30% from the year-to-date high, leading to a multi-billion-dollar wipeout.
Technicals suggest that the XRP price has more downside in the coming weeks. For one, it is about to form a death cross as the 50-day and 200-day Exponential Moving Averages (EMA) near their crossover. Such a crossover would lead to more downside.
Its top oscillators, like the Relative Strength Index (RSI) and the Stochastic Oscillator, have continued falling. The token has moved to the 38.2% Fibonacci Retracement level. It also moved below the Supertrend indicator.
Therefore, the token will likely continue falling in the coming days as buyers remain in the sidelines. Such a crash may have it plunge to the psychological point at $2.
A drop below the support at $2 will point to more downside, potentially to the year-to-date low of $1.3826, its lowest level this month.
On the other hand, a move above the 50-day Exponential Moving Average at $2.6650 will invalidate the bearish XRP price forecast.
Why the Ripple Price is Falling
The XRP price has crashed as sentiment in the crypto industry worsened and a sense of fear among investors prevailed despite some notable macro news.
For example, the Federal Reserve slashed interest rates by 0.25% on Wednesday. They brought the official cash rate to between 3.75% and 4%, citing the weak labor market.
The other notable macro news was the deal inked between Donald Trump and Xi Jinping. The two leaders reached a deal that de-escalated the trade war. Indeed, China has already started buying soybeans from the United States.
The XRP price also plunged after the Securities and Exchange Commission (SEC) gave its go-ahead for the launch of top altcoin ETFs like Hedera (HBAR), Solana (SOL), and Litecoin (LTC).
This approval is bullish for the XRP price as it means that the SEC will greenlight the multiple ETFs in the coming weeks. These ETFs will likely have substantial inflows as evidenced by the recent XRPR ETF, which has gained over $115 million in assets in a month. The XXRP ETF has over $340 million in assets.
Still, despite all this, the Crypto Fear and Greed Index has remained in the fear zone of 31. If the ongoing trend continues, the index will likely move to the extreme fear zone today.
The ongoing Ripple crash is happening because of the overall performance of the crypto industry. A closer look shows that Bitcoin and most altcoins have all plunged in the past few days.
XRP price has also dropped as the XRP Ledger network is struggling as the total value locked (TVL) standing at just $86 million. Its burn rate has continued falling in the past few months.
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