The XRP price is showing early signs of a potential crash, with the Death Cross formation appearing on the daily chart on Thursday, November 27.
Historically, this technical pattern, which involves the 50-day simple moving average (SMA) crossing below the 200-day one, has coincided with drops of up to 15% for XRP, suggesting a possible slide toward the $1.50 range, based on the current price of $2.17.
In a recent post on X, market analyst Umair noted that the asset is consolidating between $1.90 and $2.08, calling the range “the entire decision maker.” Sustained trading at this level could allow for a month-long consolidation, while a failure to hold could trigger a sharp decline.
The same pattern emerged earlier this month, on November 9, when XRP was trading at around $2.33, only to drop to $2.21 by November 17. Last month, on October 2, the omen coincided with a 10.6% pullback on the weekly chart.
Is XRP struggling again?
The broader cryptocurrency market is seeing notable gains today, with most major coins trading higher amid renewed investor optimism. Bitcoin (BTC), for instance, soared as its total capitalization went from $1.73 trillion to $1.83 trillion, while Ethereum (ETH) rose nearly 4% and remained above the $3,000 mark.
Meanwhile, XRP continues to struggle, capped under resistance at $2.30. The Relative Strength Index (RSI) sits at 46, pointing to weakened momentum that could persist in the near term.
Nonetheless, while XRP’s price has steadily fallen since early November, it can be noted that exchange-held reserves have followed suit, indicating a potential inverse relationship between liquidity and investor confidence. That is, declining exchange reserves are often viewed as a bullish long-term signal since reduced supply can limit sell-side pressure.
Still, near-term sentiment remains fragile, influenced by macroeconomic uncertainty such as the upcoming Federal Reserve meeting. To boot, the token is currently trading near its two-week moving average, reflecting sideways consolidation rather than a decisive trend reversal.
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