XRP price has surged in recent sessions, tracking bullish momentum in the broader cryptocurrency market. After weeks of consolidation, the altcoin has returned to key levels, signaling renewed investor interest.
Despite this recovery, XRP remains at risk of a technical death cross, making holder behavior critical in determining near-term direction.
XRP is currently approaching a death cross on the daily chart. The 50-day exponential moving average is converging with the 200-day moving average, with the latter potentially breaking above the former. This crossover usually signals bearish momentum and trend weakness.
However, the context is worth noting. XRP has held a golden cross since November 2024, marking a 14-month bullish structure. While the moving averages are narrowing, the momentum of the recent rally reduces the likelihood of an imminent death cross.
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On-chain data suggests investors remain resilient despite rising prices. Exchange balance indicators show limited selling over the past six days, coinciding with a recovery in XRP prices. During this period, only about 24 million XRP (valued at $51 million) were moved to exchanges.
This sell-off remains modest given that prices are up 16% over the same period. The data suggests holders are choosing not to actively allocate. Reduced exchange inflows generally support price stability as there are fewer tokens available for liquidation.
This restraint reflects investor confidence. When selling remains mild during a rally, price gains are more likely to persist. This behavior strengthens the case for XRP to maintain its upward trajectory and avoid a bearish crossover.
At the time of writing, XRP is trading near $2.14, up 16.5% in the past 24 hours after decisively breaking through the $2.00 mark. The current situation favors the bulls, supported by improving sentiment in the spot market and limited selling pressure.
Momentum indicators reinforce this outlook. The funds flow index has climbed to a three-and-a-half-month high and remains well above the zero line. MFIs use price and volume to assess buying and selling pressure. That it rose alongside prices confirmed demand-driven forces rather than a speculative surge.
If this momentum holds, XRP could extend its gains to $2.20, with the next resistance level being $2.31. However, the bullish thesis depends on investors’ continued belief. A turn to selloff could push XRP back to $2.03 or below $2.00, reigniting death cross risk.
Read original story XRP price faces first death cross in 14 months – what happens next? Author: Aaryamann Shrivastava from beincrypto.com
