XRP Faces Death Cross Can $2 Support Hold Amid Bearish

Currently hovering around the $2 support level, XRP Price, the digital asset connected with Ripple, is negotiating a turning point. Market experts are keenly tracking this milestone due to the development of negative technical indicators, most notably, the formation of a “death cross” in several timeframes.

XRP Nears Death Cross

Technical analysis defines a death cross as crossing a short-term moving average, usually the 50-day MA, below a long-term moving average, usually the 200-day MA. Traders and analysts interpret this crossover as a strong bearish signal that can precede a significant price downturn.

XRP shows signs of forming this pattern on the 4-hour and daily charts. The 50-day MA is slowly descending toward the 200-day MA, raising alarm among traders that further losses could be imminent. Historically, death crosses have led to prolonged downtrends across multiple Crypto Market assets, and XRP’s recent price action adds to those concerns.

XRP Price Outlook

XRP has progressively dropped to try the $2 support level after failing to sustain the positive momentum over $2.50. Analysts are actively monitoring this zone, targeting prior important levels such as $1.96 and possibly $1.80 in a more severe bearish scenario, since a breach below $2 might expose the asset to more downside.

Conversely, should XRP maintain its support and create a foundation, a rebound is likely. To refute the bearish thesis and create a prospective push toward the $2.70 and $3 resistance zones, one would have to get back above $2.20 and finally $2.50.

XRP Whale Activity

Though chart patterns are gloomy, XRP is seeing some intriguing on-chain activity. Recent data from blockchain analytics systems indicate that big XRP holders, sometimes called “whales,” have accumulated tokens during the current slump. Since mid-December, wallets with one million to ten million XRP have added eighty million XRP.

Experienced investors usually see this kind of accumulation during a recession as a sign of confidence. This implies that, although the general market mood is cautious, large holders set themselves up for a possible long-term upside when short-term selling pressure is reduced.

XRP Regulatory Uncertainty

One of XRP’s long-standing challenges is its legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC alleges that Ripple Labs conducted an unregistered securities offering when it sold XRP, a case that has had a chilling effect on institutional interest in the asset.

The Chicago Mercantile Exchange (CME) recently made headlines for opting not to list XRP futures, citing a lack of institutional demand. This development underscores the regulatory uncertainty still surrounding XRP and reflects the hesitance of large financial players to embrace the asset until a resolution is reached fully.

Although the legal outcome remains unclear, XRP may struggle to attract significant institutional capital, even if technical and on-chain data present opportunities.

XRP Support Analysis

The immediate outlook for XRP hinges on defending the $2 support level. If bulls can hold this line and reclaim higher ground above $2.20, XRP might avoid the full impact of the death cross and instead enter a consolidation phase before making another upward attempt.

However, if selling pressure persists and XRP breaks below $2 with substantial volume, it could trigger a cascade of stop-losses and liquidations, accelerating the drop toward the next support range around $1.96 to $1.80.

Traders are also watching the Relative Strength Index (RSI), which is approaching oversold territory — a potential signal that the asset could be due for a bounce. However, the current conditions require volume and bullish sentiment to sustain the bounce.

Final thoughts

XRP balances on the brink of a significant technical and psychological milestone, at a crossroads. The approaching death cross accentuates the pessimistic view, but significant holdings around $2 and historically solid support could provide some optimism for bulls.

A price of close to $2 will be vital in the coming days. A calculated action in either way could define XRP’s performance in the following weeks. The market is still wary, and we are waiting to see whether XRP will maintain the line or sink more under the weight of negative momentum.