XRP price has confirmed a highly bearish pattern on the daily chart as risk-off sentiment continues to weigh on the broader crypto market.
Summary
- XRP price fell 7% to an intraday low of $2.27 on Friday.
- The bearish sentiment prevailing across the market has weighed on XRP investors.
- Multiple bearish patterns have formed on the daily chart.
According to data from crypto.news XRP (XRP) fell 7% over the past 24 hours to an intraday low of $2.27 before recovering slightly to $2.32 at press time. At its current price, Altocin remains 36% below its all-time high of $3.65 reached in mid-July.
XRP price fell as part of a broader crypto market slowdown triggered by Bitcoin’s fall below $97,000a level it had not touched since May of this year. Investor demand for XRP has also been affected due to rising US Treasury yields, which gained further momentum after the government ended one of the longest lockdowns in the country’s history.
When government bond yields rise, investors tend to rotate capital into them and away from riskier assets like cryptocurrencies, including Ripple’s XRP.
Derivatives traders also appear to have contributed to XRP’s losses today. glass coin data shows that open interest in the futures market has fallen to $3.63 billion, well below the level of $8.36 billion seen on October 10.
A decrease in open interest is often considered a sign that traders are closing positions and moving away from the market, which may indicate a weakening of conviction in the current trend.
In addition to this, the long/short ratio below 1 at 0.88 suggests that more traders are betting on a further drop in the token in the coming days. This bearish tilt may have further influenced sentiment among spot market participants.
Examining the daily chart of XRP reveals that the price action appears to have confirmed a death cross, which is formed when the 50-day simple moving average crosses below the 200-day simple moving average.
In technical analysis, death crosses have historically been followed by prolonged periods of weakness as market momentum shifts in favor of sellers.
Adding another layer of pressure, XRP has also been trading within a descending parallel channel pattern since mid-July of this year. When price action is limited to this channel, it often indicates that the broader trend remains locked to the downside and that rallies are likely to be met with selling at the upper limit.
A combination of the death cross and the descending channel suggests that XRP may continue to struggle in the near term unless buyers step in with heavy volume.
For now, the $2 region, which also aligns with the 50% Fibonacci retracement level, appears to be an area of strong support for XRP and is where buyers can attempt to stabilize the price. If this floor gives way, the token could fall towards its June low of $1.9, which is almost 18% below the current price.
Conversely, a bull case could begin to take shape if Canary Capital’s XRP spot ETF, which launched just a day ago, attracts strong and consistent inflows. like a report As revealed by crypto.news, the fund generated $58 million in trading volume on its first day of trading.
If this trend continues, XRP could try to move towards the $2.58 to $2.65 resistance zone. A decisive break above that region may help it escape the descending channel pattern and could usher in a more sustained recovery.
