Karla Barker 
XRP Technical Analysis Shows Bearish Signals
XRP has confirmed what technical analysts call a death cross pattern on its daily chart. This happens when the 50-day moving average crosses below the 200-day moving average, and it’s generally seen as a bearish signal. The pattern emerged as part of a broader downturn across cryptocurrency markets.
Looking at the numbers, XRP dropped about 7% in the last 24 hours, hitting a low of $2.27 before recovering slightly to $2.32. That puts it about 36% below its all-time high from mid-July when it reached $3.65. The decline wasn’t isolated to XRP though – Bitcoin also fell below $97,000, a level it hadn’t touched since May.
Market Factors Contributing to the Decline
Several factors seem to be working against XRP right now. Rising U.S. Treasury yields have made government bonds more attractive to investors, pulling money away from riskier assets like cryptocurrencies. When yields go up, people tend to rotate their capital into safer investments.
Derivative traders appear to be pulling back too. Open interest in XRP futures has dropped significantly to $3.63 billion, way down from the $8.36 billion level we saw back in October. Lower open interest usually means traders are closing positions and stepping away from the market, which suggests weakening conviction in the current trend.
The long/short ratio sitting at 0.88 tells us that more traders are betting on further downside than upside. That bearish sentiment can become self-reinforcing as it influences spot market participants.
Technical Patterns and Potential Scenarios
Beyond the death cross, XRP has been trading inside what’s called a descending parallel channel since mid-July. When price action stays confined within this pattern, it typically means the broader trend remains downward, with rallies likely to face selling pressure at the upper boundary.
Combining both the death cross and the descending channel suggests XRP might continue struggling in the short term unless buyers step in with significant volume. The $2 area looks like a strong support level, aligning with the 50% Fibonacci retracement level. If that support holds, buyers might be able to stabilize the price there.
But if $2 gives way, the next significant support sits around $1.90, which would represent about an 18% drop from current levels. That was the low point back in June.
Potential Bullish Catalysts
There is some potential good news though. Canary Capital just launched a spot XRP ETF, and it generated $58 million in trading volume on its first day. If that fund continues to attract steady inflows, it could provide some support for XRP.
A sustained recovery would likely need XRP to break above the $2.58-$2.65 resistance zone. Getting through that area might help it escape the descending channel pattern and potentially mark the beginning of a more sustained upward move.
For now, the technical picture looks challenging, but markets can turn quickly. The death cross pattern doesn’t guarantee further declines – it’s just one indicator among many. Still, the combination of technical factors and broader market conditions suggests caution might be warranted in the near term.