XRP has been having a tough time lately, struggling to regain any bullish momentum over the past month.
With not much movement in its price, many investors are feeling the pinch as their profits dwindle, which is adding more pressure on this altcoin.
And now, a death cross just occured on the charts.
Midnight blues
The stagnation in XRP’s price has left many investors worried about what’s next.
The MVRV Long/Short Difference for XRP has dipped into negative territory after a slight correction over the last few days.
Now, when the MVRV is positive, it means long-term holders are sitting pretty with profits.
But right now, it’s sitting at -0.08%, which suggests that short-term holders are doing better.
This balance shows just how weak the market is for XRP, likely because the Ripple-SEC legal drama.
With neither group seeing significant profits, not the long term holders and not the short term holders, it’s clear that XRP is stuck in a rut.
This lack of momentum makes it vulnerable to further drops if the overall market takes a turn for the worse.
Technical signals aren’t great
From a technical standpoint, things aren’t looking too rosy either. XRP’s moving averages are forming what’s called a death cross, which is a quite bearish signal that occurs when a short-term moving average dips below a long-term one.
Historically, these signals in weak markets don’t last too long, but if the whole market crashes, this death cross could hang around and keep pushing XRP down.
Currently, XRP it is just above the 38.2% Fibonacci Retracement line at $0.52, which has been a key support level for the coin.
This level is likely to hold strong for now, giving investors some hope as they cling to their positions.
Resist!
On the other hand, XRP is facing resistance at $0.55, which aligns with the 50% Fibonacci line.
This combination of support and resistance already created a sort of holding pattern for XRP.
Given the current technical and market conditions, it looks like this consolidation phase will stick around for a bit unless something big happens to shake things up.
But if that death cross leads to more downward pressure, we could see XRP slip below $0.52.
If that happens, watch out! It might drop down to $0.47, which would signal an even bigger correction on the horizon.
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