XRP on the Edge: “Death Cross” Formation Signals Possible Drop Below $2

The price of XRP is nearing one of its most dangerous technical signals in months — the formation of a Death Cross, where the 50-day moving average crosses below the 200-day line. This pattern has historically been associated with prolonged bearish cycles, and with large-scale whale sell-offs intensifying, market pressure is mounting — possibly pushing XRP below the critical $2 threshold.

Technical Setup Points to a Bearish Cycle XRP is currently trading just under $2.30, as the 50-day and 200-day moving averages approach a bearish crossover.

Historically, this formation signals weakening demand and rising downside risk. The 200-day MA remains flat, indicating market fatigue, while the 50-day line slopes sharply lower — a clear sign of dominant selling pressure. Repeated failures to reclaim $2.60 further highlight fading buying interest. Should the “Death Cross” be confirmed, it could trigger algorithmic sell-offs and cascading liquidation, amplifying market pessimism.

Indicators Show Strengthening Selling Momentum Bollinger Bands have widened, reflecting increased volatility, while XRP now trades near the lower band — a sign of sustained selling pressure.

The RSI has dropped to 36, confirming bearish dominance, and the price remains below the 20-day simple moving average, signaling weak short-term momentum. After breaking below the $2.29 support, XRP now faces the risk of testing the $2.00 psychological level. If bearish pressure continues, analysts warn of a possible decline toward $1.60, a key rebound zone from previous cycles.

Whale Activity Intensifies Selling Pressure In just five days, whales have sold over 900,000 XRP, indicating a significant outflow from major holders and growing market tension.

Historically, such large-scale sales have preceded deeper corrections, as whales tend to exit before broader downturns. On-chain data also shows a decline in XRP held by addresses owning 100 million to 1 billion tokens, alongside an increase in exchange balances — suggesting rising supply and weakening confidence.

What Could Reverse the Trend? For XRP to regain bullish momentum, the asset would need to break through resistance at $2.45 and hold above $2.60, signaling renewed buying pressure.

However, as it stands, the coin is likely to enter a consolidation phase with risk of a drop below $2, unless market volume and sentiment shift dramatically.

Summary The combination of an impending Death Cross, rising volatility, a weak RSI, and massive whale sell-offs has created the most unfavorable setup for XRP since early 2024.

Unless the market recovers quickly, a fall below $2 appears increasingly likely — with potential downside extending toward the $1.60 support zone.

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