XRP has confirmed a bearish technical pattern known as a "death cross," coinciding with a sharp market-wide sell-off driven by macroeconomic fears. The death cross, which occurs when a short-term moving average crosses below a longer-term average, emerged about 48 hours after the coin's first golden cross of 2026, signaling a rapid reversal in momentum.
This technical development has placed XRP in a tight trading range between $1.97 and $2.06, with analysts suggesting a struggle to break above this level without a significant bullish catalyst. As of press time, XRP is trading at $1.97, reflecting a decline of approximately 4% over the last 24 hours. The coin plunged from a daily high of $2.06 to a low of $1.85 on Coinbase before a slight rebound.
The price drop has triggered extreme liquidation events. Data reveals an 8,700% liquidation imbalance, with long-position traders wiped out near $2 billion. This has nullified a 12% spike in open interest registered over the weekend, where traders had committed $1.4 billion on future price outlooks. Despite the bearish price action, XRP's trading volume surged dramatically, rising by 158% to $3.68 billion, indicating high trader activity and positioning adjustments.
The sell-off extends beyond XRP to the broader cryptocurrency and traditional markets. Fears of new U.S. tariffs on European goods triggered a global risk-off sentiment, leading to nearly $878 million in crypto liquidations in the last 24 hours, with long positions accounting for the majority. Losses in digital assets mirrored those in equities, with U.S. equity-index futures and European futures falling sharply, while safe-haven assets like gold and silver surged.
This market movement marks a stark reversal from a promising start to the year for XRP, which saw a five-day surge to $2.41 on January 5th. The coin has now recorded losses in 12 out of the last 13 days, nearly erasing its early-2026 gains and approaching its January 1st low of $1.82. Investor sentiment remains cautious, with ongoing concerns about regulatory clarity and long-term institutional adoption despite XRP's established non-security status.
