XRP is up against short-term price pressure as a death cross has formed on its technical chart. The development has forced a more than 3.5% price decline in the altcoin, whose weekly gain pushed it past the $1.50 resistance level recently.
XRP price slips below $1.50 as market volatility intensifies
The bearish indicator has triggered short-term effects on the price of the asset. Notably, a death cross forms when a short-term moving average crosses below a long-term average.
The formation of a death cross is regarded as a bearish indicator among traders. The signal causes investors to move with caution.
This development has affected XRP’s price trajectory, reversing the gains made in the last seven days on the crypto market.
XRP Price Chart | Source: TradingViewCoinMarketCap data reveals that XRP currently exchanges hands at $1.46, which represents a 3.57% decrease in the last 24 hours. The price has once again slipped below the critical $1.50 support, which previously sparked bullish hopes among market participants.
The coin’s trading volume is green and up by 11.38% at $3.18 billion. It is likely that part of the trading engagements include a sell-off, as the broader crypto sector has been gripped by fears of hawkish Federal Reserve signals.
Additionally, geopolitical tensions in the Middle East are adding to the pressure on risk assets like XRP. This suggests that the dip in price is not limited to XRP alone. However, the death cross formation has made the situation more severe for the coin’s price outlook.
Key XRP support levels to watch amid mixed fundamentals
XRP traders are currently monitoring the $1.44 price support. If the short-term pressure does not breach this key support, XRP might shake off the bearish signal and rebound to the $1.50 level. However, a dip below it could see XRP’s price slip to $1.40 or even lower.
Interestingly, before XRP’s death cross formation, traders on Binance were betting aggressively on long positions. There was bullish sentiment among top traders in the XRP space, who were quietly accumulating the asset in anticipation of a rally.
The trigger, among other things, included regulatory clarity from the U.S. Securities and Exchange Commission (SEC). The regulatory body has reclassified XRP and some other crypto assets as commodities, not securities.
The reclassification clears the way for exchanges to list XRP and could boost the adoption drive in the broader financial space.
Meanwhile, the XRP Ledger has hit a 13-year milestone, with over 7.7 million active wallets containing XRP. The development signals growing adoption in the ecosystem.
Source: https://u.today/xrp-price-faces-short-term-pressure-as-death-cross-forms
