XRP’s Price Surge: Can It Overcome the ‘Death Cross’ and Keep Climbing?

XRP has been a focal point of attention in the cryptocurrency space recently, exhibiting a remarkable rebound despite facing some technical challenges, such as the “death cross” on its hourly charts. Here’s a deeper dive into XRP’s current market action and the surrounding factors influencing its price.

XRP’s Price Action and Technical Analysis

XRP, the fourth-largest cryptocurrency by market value, experienced a 5% price surge over the last 24 hours, reaching $2.35. This rebound came despite the presence of a “death cross” on its hourly charts. A death cross occurs when a short-term moving average crosses below a long-term moving average, often signaling a potential bearish trend and further declines. Typically, it’s a signal that traders watch out for when considering short-term price trends.

However, the resilience of XRP amid this technical signal speaks to underlying market dynamics and accumulation by large holders. Despite the “death cross,” XRP found support and rose significantly, indicating that the broader market is in a phase of recovery.

The Larger Crypto Market Context

The broader cryptocurrency market faced massive liquidations earlier in the week, with over $1.4 billion in positions being closed out in Friday’s session. This sell-off led to a significant dip across many cryptocurrencies. Yet, the market quickly regained ground over the weekend, signaling a market correction and potential for recovery.

A key catalyst for the market’s rebound was the lower-than-expected inflation reading from the Fed’s preferred inflation gauge on Friday, which alleviated some of the disappointment from the Fed’s interest rate decision earlier in the week. This contributed to a broader sense of market optimism.

Whale Activity and Accumulation

On-chain data also indicates that whales, or large holders, have been actively accumulating XRP during the recent price dip. According to blockchain tracker Whale Alert, a significant transfer of 99,999,977 XRP (worth approximately $222 million) was detected between unknown wallets. This points to a large-scale accumulation by whales, who have been buying up XRP since the price correction began on December 17. Analyst Ali Martinez reports that whales have accumulated around 80 million XRP during this period, reflecting their confidence in XRP’s potential for a future rally.

Key Support and Resistance Levels

The price of XRP has shown notable volatility, with a sharp rebound from its lows of $1.95 on Friday. However, XRP encountered resistance at $2.72 on December 17, and it has oscillated between these levels ever since.

For the bullish outlook to remain intact, $1.90 represents a critical support level. If the price breaks below this threshold, it could potentially open the door for a drop to the 50-day Simple Moving Average (SMA) at $1.59. On the other hand, a break above $2.73 could signal a fresh uptrend, with potential targets toward $3 and beyond.

The Relative Strength Index (RSI) is currently positioned just above the midpoint, suggesting that XRP is likely to trade within a range-bound structure in the near term, oscillating between $1.90 and $2.72. If momentum picks up and the price breaks past $2.73, it could set the stage for a new rally.

Positive News for the XRP Ledger

In addition to the price action, there’s positive news surrounding the XRP Ledger (XRPL). The Multi-Purpose Token (MPT) on the XRP Ledger has successfully passed an audit by Softstack GmbH, with zero critical issues found. This is a significant development, as it indicates that the MPT token standard on XRPL is secure and robust. This tokenization standard will play a pivotal role in enabling efficient tokenization of digital assets on the XRP Ledger, expanding its use case and reinforcing XRPL as a trusted platform for decentralized financial applications.

The successful audit is crucial because it builds confidence in the security of the XRP Ledger and supports the ongoing efforts to enhance the ledger’s infrastructure for diverse digital assets and blockchain applications.

Conclusion

Despite facing short-term bearish signals like the death cross, XRP has shown remarkable resilience with a 5% price recovery over the last 24 hours. The broader market correction and subsequent recovery, combined with continued accumulation by whales, suggest that XRP could be poised for further growth. Key support and resistance levels will play a critical role in determining the next phase of price action. Furthermore, positive developments on the XRP Ledger, such as the successful MPT audit, further strengthen the case for XRP’s long-term potential as a foundational asset in the blockchain ecosystem.

As XRP continues to consolidate and the broader market stabilizes, it remains to be seen whether the bullish momentum will continue. However, the whale accumulation and positive technical developments point toward a potentially exciting phase for XRP in the coming weeks.

Read more about XRP: 

How to buy XRP (XRP)

XRP (XRP) Price Today

How to Stake XRP (XRP)

XRP to USD: Convert Ripple to US Dollar

FAQs

What does a 'Death Cross' mean for XRP? A "Death Cross" occurs when a short-term moving average (such as the 50-day) crosses below a long-term moving average (like the 200-day). It is traditionally seen as a bearish signal, suggesting the possibility of further price declines. However, in XRP's case, despite this technical indicator, the coin has shown resilience, with a 5% price surge, suggesting that there may be other factors driving its price action.

How does whale activity impact XRP's price? Whale activity refers to large holders of XRP accumulating significant amounts of the cryptocurrency. Recent on-chain data, such as a $222 million transfer detected by Whale Alert, indicates that whales have been actively buying during price dips. This accumulation by institutional or large retail investors is seen as a bullish signal, as it suggests confidence in XRP's long-term potential and could lead to future price rallies.

What are the key support and resistance levels for XRP? XRP has encountered resistance around the $2.72 level and has found support at $1.90. These levels are crucial for determining whether XRP can continue its upward momentum or face further declines. If XRP maintains support at $1.90, it may signal further consolidation or a potential bounce back. Conversely, a break above $2.73 could trigger a new rally, potentially pushing XRP toward the $3 mark and beyond.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.