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$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.
CoinMarketCap 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.