XRP PRICE ANALYSIS: Brace for "Death Cross" Threat While Bulls Defend $2.06

XRP’s price has fallen nearly 24.5% over the past month, hitting a low of $2.06 after completing a bearish Head and Shoulders breakdown pattern. The token is now at a critical turning point, facing a looming long-term bearish signal even as short-term accumulation signs appear.

I. Major Bearish Warning: The Death Cross Threat

The most significant risk to XRP’s long-term outlook is the potential formation of a Death Cross: Death Cross Warning: On the daily chart, the 50-day Exponential Moving Average (EMA) is closing in on the 200-day EMA. If the 50-day crosses below the 200-day, it forms a Death Cross, a highly bearish technical signal that typically warns of extended weakness in the price.Derivatives Pressure: Despite the low price, bears maintain control in the derivatives market, with roughly eight times more short leverage ($262 million) than long positions ($33 million) between $2.31 and $2.63.

II. Key Reversal & Consolidation Signals

Current market data suggests the short-term bearish correction may be complete, attracting buyers: Correction Complete: The price drop to $2.06 nearly perfectly hit the target of $2.09 set by the Head and Shoulders breakdown, often signaling the end of the short-term bearish phase.Accumulation Sign: On-chain data from Glassnode shows that XRP exchange net positions turned sharply negative (showing outflows from exchanges) since late October. These withdrawals indicate that larger holders are likely accumulating tokens in the post-drop zone.Consolidation Range: Analysts view the current structure as consolidation within a broader uptrend, suggesting a cooling phase in the $2.25–$2.30 area before the next decisive directional move.

III. Critical Support and Rebound Targets

The immediate price action will hinge on defending the current floor: Critical Support Level: The key price level that bulls must maintain is $2.06. This is acting as a strong base following the recent drop.Bearish Targets if Support Fails: If the $2.06 support breaks, XRP could retest $1.91 before any attempt at a recovery.Rebound Targets: To flip short-term sentiment bullish again, XRP needs a break above $2.45 and $2.55. A decisive close above the $2.55–$2.70 range could end the correction, opening a path toward extended targets up to $3.10 and even $3.40.

IV. Disclaimer

This article is for informational purposes only and is based on third-party analyst commentary and technical analysis. The views expressed herein do not constitute financial, investment, or trading advice. The cryptocurrency market is highly volatile and speculative. Readers must conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions.