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The asset may be at significant risk of a bear market as XRP approaches a possible death cross, a very bearish signal where the short-term EMA falls below the long-term EMA. This pattern usually signifies a loss of momentum and increases the likelihood of further decline. As the chart shows, the EMAs are starting to converge towards a bearish cross.
If this death cross materializes, XRP may undergo a more severe correction. Despite the uptrend line providing short-term support, XRP has not demonstrated much ability to maintain strong bullish momentum and the current price movement is already volatile. However, the $0.50 uptrend line does not seem to provide enough support to halt the current downtrend.
XRP/USDT chart by TradingView
XRP has tested this level of support several times, each time with decreasing strength. While a death cross is unlikely to halt a bearish breakout, it could slow the decline. The current trend line and $0.49 are important support levels to watch. Strong buying interest for XRP could be observed at $0.45, below which is the more important support level. If the bearish pressure continues, $0.42 will be the next important level.
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If XRP falls below this range, it becomes even more vulnerable and more likely to revert further. Low trading volumes and reduced buyer activity further support the bearish outlook, as evidenced by the lack of significant price upward movement.
If a death cross materializes, selling pressure will increase rapidly and the asset may fall. Although the technical situation is currently heavily tilted towards the bearish side, investors are likely to keep an eye on these key levels to see if XRP can hold its ground.
