XRP price has struggled to regain bullish momentum over the past four weeks, with the altcoin experiencing a lack of significant movement. As a result, many key holders have seen their profitability decline, putting additional downward pressure on the cryptocurrency.
The recent price stagnation has left investors concerned about the future trajectory of XRP, especially with bearish indicators now emerging.
XRP Investors Are Dejected
The MVRV Long/Short Difference for XRP has recently slipped into negative territory following a correction over the last three days. When the MVRV is positive, it suggests that long-term holders (LTHs) are profitable, while negative values indicate that short-term holders (STHs) are more profitable. Currently, with the MVRV sitting at -0.08%, both LTHs and STHs are at parity, reflecting a weak market.
The fact that neither group is in significant profit highlights the ongoing uncertainty surrounding XRP. This equilibrium suggests that XRP lacks the necessary momentum to break out of its current range, making it vulnerable to further corrections if broader market conditions worsen.
Read more: XRP ETF Explained: What It Is and How It Works
From a technical perspective, XRP’s macro momentum is showing signs of weakness. The cryptocurrency’s exponential moving averages (EMAs) are forming a death cross, a bearish signal that occurs when the short-term EMA crosses below the long-term EMA.
Historically, these death crosses in weak markets have tended to last for shorter durations, which may be the case for XRP at present. However, if the broader market crashes, the death cross could persist, extending its negative impact on XRP’s price over a longer period.
XRP Price Prediction: Consolidation Remains Intact
XRP’s price is currently hovering above the 38.2% Fibonacci Retracement line at $0.52, which has acted as a critical support level for the altcoin. This level will likely continue to provide strong support in the near term, serving as a key area of defense for investors looking to hold onto their positions.
Additionally, XRP faces resistance at $0.55, which coincides with the 50% Fibonacci line. This combination of support and resistance has created a consolidation range for XRP. Given the ongoing technical and market conditions, this consolidation is expected to remain intact for the coming days, with XRP unlikely to break out of this range without significant external catalysts.
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However, should the death cross lead to further downward pressure, XRP could lose its support at $0.52. This could trigger a drop to $0.47, a level that would invalidate the current bearish-neutral outlook and suggest a more significant correction is underway.
The post XRP Faces Death Cross as Price Fails to Break $0.55 appeared first on BeInCrypto.
