Usman Salis
Despite a technical bearish pattern on its chart, the fourth-largest cryptocurrency by market cap has shown significant strength, climbing to $2.15 after a brief dip.
XRP (XRP) Bulls Reject Death Cross Formation on Four-Hour Chart
XRP, the fourth largest cryptocurrency by market capitalization, has demonstrated remarkable resilience by surging 6% in the last 24 hours, effectively dismissing a bearish technical signal on its chart. The digital asset encountered a death cross formation on its four-hour chart, which typically signals potential downward pressure when a short-term moving average (usually the 50 SMA) falls below a long-term moving average (typically the 200 SMA).
This bearish indicator initially triggered a price decline to $2.02 in the hours following its appearance. However, XRP bulls quickly stepped in to reverse the decline, showcasing the strong support beneath the asset.
XRP (XRP) Reaches $2.19 as Cryptocurrency Market Rebounds
In defiance of bearish expectations, XRP surged to $2.19 during Tuesday's early trading session, marking a significant recovery from its recent lows. At the time of writing, XRP is trading at $2.15, representing a 6% increase over the past 24 hours.
The broader cryptocurrency market has also experienced a rebound in Tuesday's early session, with the majority of digital assets trading higher. Optimism appears to be returning to the cryptocurrency ecosystem, as evidenced by modest inflows of $226 million last week, according to CoinShares' March 31 report. Notably, altcoins attracted significant interest, with XRP specifically receiving $4.8 million in inflows.
Despite this positive development, traders remain cautious about short-term market movements. One encouraging sign, however, is that lower prices seem to be attracting buyers back to the market.
XRP (XRP) Technical Analysis: Key Levels to Watch
XRP has been on a steady decline since March 24, registering losses in six out of seven trading days since that date. The cryptocurrency touched lows of $2.02 on March 31 before initiating its current rebound.
In upcoming trading sessions, market participants will be closely monitoring whether this rebound represents sustainable momentum or merely a "dead cat bounce" – a temporary relief rally before prices continue their downward trajectory.
If the recovery proves sustainable, the daily 50 SMA at $2.39 represents a crucial level for XRP to reclaim. Successfully breaking above this resistance could potentially position XRP to once again target the psychologically important $3 level.
Conversely, a break below the $2 support level might complete a bearish head-and-shoulders pattern for XRP. While modest support exists at $1.77, a breach of this level could potentially send XRP tumbling toward $1.27.
XRP (XRP) Included in Grayscale's ETF Conversion Filing
In positive developments for XRP, asset management giant Grayscale has submitted a filing to the U.S. Securities and Exchange Commission (SEC) seeking approval to convert its Digital Large Crypto Fund, which includes XRP among its holdings, into an exchange-traded fund (ETF).
This move represents significant institutional interest in XRP and could potentially enhance its accessibility to traditional investors if approved. The filing comes at a time when cryptocurrency ETFs are gaining increasing attention from both regulatory bodies and institutional players.
While the broader cryptocurrency market continues to experience volatility, XRP's ability to quickly recover from bearish technical signals demonstrates the strong conviction among its holder base. As global markets adjust to changing economic conditions, XRP's performance relative to both traditional financial assets and other cryptocurrencies will remain a key indicator of shifting investor sentiment.
Despite the recent string of negative trading days, XRP's quick rejection of the death cross pattern suggests that bulls remain confident in the asset's long-term prospects, even as technical indicators temporarily point toward bearish scenarios.
Usman Salis
