XRP's price is at a critical juncture as a death cross signal appeared on its four-hour chart, raising concerns about a potential drop below $2. This bearish indicator has historically led to significant price declines, yet whale activity shows a contrasting trend, with 190 million tokens acquired in just a week. Optimism surrounding the ongoing Ripple vs. SEC case and potential XRP ETF approvals appear to be fueling this whale accumulation.
As of May 30, when the death cross first emerged, XRP has faced increased selling pressure, with the 50-day simple moving average trending downwards, highlighting buyer hesitation and increased bearish sentiment. A past occurrence of a death cross on March 30 resulted in a 23% price drop within a week, and analysts are cautious of a repeat. The current price of around $2.18 could see a further decline to as low as $1.68 if support levels fail.
Despite this grim outlook, whales have been actively increasing their holdings, with addresses controlling between 1 million and 10 million XRP tokens boosting their total from 6.08 billion to 6.27 billion. This surge in accumulation indicates confidence from these larger investors, potentially driven by upcoming announcements in the Ripple case and optimistic sentiments regarding ETF approvals.
Due to the mixed signals, it’s essential for XRP investors to monitor key support levels, particularly at $2.06. Should the price hold above this mark and break through the $2.20 resistance, it may counteract the bearish implications of the death cross. Meanwhile, a buy signal on the MACD indicates a possible softening of bearish momentum if buying interest increases. Therefore, those investing in XRP might see advantageous positions if the price dips below $2, as many traders are poised to leverage potential rebounds during such corrections.
As of May 30, when the death cross first emerged, XRP has faced increased selling pressure, with the 50-day simple moving average trending downwards, highlighting buyer hesitation and increased bearish sentiment. A past occurrence of a death cross on March 30 resulted in a 23% price drop within a week, and analysts are cautious of a repeat. The current price of around $2.18 could see a further decline to as low as $1.68 if support levels fail.
Despite this grim outlook, whales have been actively increasing their holdings, with addresses controlling between 1 million and 10 million XRP tokens boosting their total from 6.08 billion to 6.27 billion. This surge in accumulation indicates confidence from these larger investors, potentially driven by upcoming announcements in the Ripple case and optimistic sentiments regarding ETF approvals.
Due to the mixed signals, it’s essential for XRP investors to monitor key support levels, particularly at $2.06. Should the price hold above this mark and break through the $2.20 resistance, it may counteract the bearish implications of the death cross. Meanwhile, a buy signal on the MACD indicates a possible softening of bearish momentum if buying interest increases. Therefore, those investing in XRP might see advantageous positions if the price dips below $2, as many traders are poised to leverage potential rebounds during such corrections.
