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XRP has formed a death cross, signaling a bearish trend and potential further price decline.
Key support lies at $2.20, with a breakdown possibly leading to levels as low as $1.10.
Bearish technical indicators and weak market sentiment reinforce short-term downside risks.
XRP, the digital asset linked with Ripple Labs, has formed a technical pattern known as a "death cross" on its daily chart as of May 21, 2025. This pattern happens when the 50-day simple moving average (SMA) crosses below the 200-day SMA. In trading and technical analysis, this crossover is often seen as a strong bearish signal, meaning that the price of the asset may fall further in the coming days or weeks.
This development has caught the attention of market watchers, traders, and investors, all of whom are now questioning whether XRP is about to experience a significant decline.
At present, XRP is trading around $2.36. The token has dropped about 0.84% in the last 24 hours and is down by more than 8% over the past week. These declines are contributing to growing concerns among market participants.
The fall in price is not just a short-term fluctuation; it appears to be part of a broader trend. Over recent weeks, XRP has shown signs of weakening momentum, and the death cross now adds to those signals, suggesting that the bearish trend may not be over yet.
In addition to the death cross, several other technical indicators also suggest weakness in XRP's price trend:
The RSI for XRP currently sits around 42. This number falls into the neutral zone but leans closer to the oversold region. When the RSI dips below 50, it typically indicates that the selling pressure is stronger than the buying pressure. An RSI below 30 would mean the asset is oversold, but even at 42, there are early signs of price weakness.
Technical analysts have observed the formation of an inverse cup-and-handle pattern on XRP’s chart. This is considered a bearish reversal pattern. It signals a high probability of further downward movement. If XRP cannot maintain current support levels, the price may slide down to $1.10, especially if the pattern completes and breaks downwards.
The Ichimoku Cloud, a popular indicator used in technical analysis to identify trends and support/resistance zones, currently shows XRP trading below the cloud. In simple terms, this means that XRP is in a negative or bearish trend. The Chikou Span, a line used in the cloud to confirm the trend, is also lagging, reinforcing the downward forecast.
Also Read: XRP Rebounds Strong: Is a New All-Time High on the Horizon?
Identifying where the price might stop falling or reverse direction is critical.
The first significant support is around $2.20. If the price falls below this level, it could potentially decline further to $2.07, and if negative momentum continues, even $1.10 becomes possible. These levels act like psychological floors; if the price breaks through them, sellers may gain even more confidence.
On the other hand, XRP faces resistance near $2.45. This level needs to be crossed for the price to move higher. If XRP can climb and stay above this line, there might be some hope for a recovery. However, the presence of the death cross and current bearish indicators makes such a reversal difficult without strong buying volume.
Beyond charts and indicators, other external events are influencing XRP's price behavior.
Recently, the introduction of XRP futures trading on the CME (Chicago Mercantile Exchange) has raised eyebrows in the trading community. Some analysts believe that the introduction of futures can lead to increased volatility or even price manipulation, as seen with Bitcoin and Ethereum in the past.
Additionally, global economic conditions play a role. The Federal Reserve’s monetary policy, especially regarding interest rates and inflation control, can impact investor appetite for risky assets like cryptocurrencies. In times of financial uncertainty, digital assets often see outflows as investors turn to safer instruments.
Another layer of uncertainty comes from regulatory developments, especially in the United States, where Ripple Labs is still facing legal scrutiny from the Securities and Exchange Commission (SEC). Although progress has been made, any new ruling could either boost or damage XRP’s market confidence.
A death cross does not guarantee an immediate or large drop in price, but it strongly indicates that the trend has shifted from bullish to bearish. Historically, such patterns often lead to extended periods of price weakness.
In the case of XRP, the death cross comes at a time when many other cryptocurrencies are also showing signs of slowing momentum. This amplifies the potential impact, especially if broader market sentiment turns negative.
Short-term traders may see this as an opportunity to short XRP or exit their positions. Long-term holders may need to be prepared for a possible prolonged consolidation or drawdown period.
Also Read: How to Buy XRP in India?
While the current outlook appears negative, trends in the crypto market can change rapidly. A positive development in Ripple’s legal battle, a major partnership announcement, or wider bullish sentiment in the crypto market could reverse the trend.
For XRP to escape the death cross impact, it would need to:
Regain strong buying volume
Break back above the 50-day and 200-day moving averages
Surpass the $2.45 resistance level with strong confirmation
If these conditions are met, a recovery may be possible, but without such catalysts, the downtrend is likely to continue.
The appearance of a death cross on XRP’s chart is a warning sign for the market. Combined with other bearish indicators such as a weak RSI, inverse cup-and-handle pattern, and trading below the Ichimoku cloud, it signals that the current trend may remain negative for some time.
Price support near $2.20 is crucial. A breakdown below this level could bring XRP closer to the $1.10 range. Resistance near $2.45 must be broken decisively for any chance at reversal.
In the absence of strong bullish news or macroeconomic changes, XRP faces significant challenges. The death cross may not be the end of XRP’s long-term potential, but it is a clear signal that caution is needed in the short term.
