XRP has formed a death cross on its hourly chart, a bearish technical pattern, as its price consolidates within a tight range. The 50-period simple moving average (SMA) has crossed below the 200-period SMA on the hourly timeframe, signaling potential for further downside. At the time of reporting, XRP was trading around $1.34, showing a slight 0.78% gain over 24 hours but remaining trapped in a sideways channel between $1.11 and $1.67 since early February.
This technical development coincides with a significant 31% rise in XRP's 24-hour trading volume, reaching $3.44 billion, indicating heightened market activity. Analysts suggest a breakout above the $1.67 resistance is needed for bulls to regain control, potentially targeting the 50-day SMA at $1.61 and then $1.70. Conversely, a break below the $1.11 support could trigger a deeper decline.
Separately, payment volume on the XRP Ledger experienced a dramatic 70% drop. However, this decline is viewed as a normalization following an explosive 400% spike in activity the previous day, during which over 1.5 billion XRP was transferred. Such spikes are often attributed to large-scale institutional movements between exchanges and custodial services.
From a price perspective, XRP is showing signs of stabilization after a sell-off pushed it toward the $1.30 range. It is now consolidating near $1.40, forming higher lows that suggest bearish momentum may be waning. The asset remains below its key moving averages, which act as overhead resistance, but momentum indicators are recovering from oversold conditions.
The broader altcoin market context remains challenging. Data from CryptoQuant indicates that 38% of altcoins are trading near all-time lows, with the recent downturn described as worse than the period following the FTX collapse. Total market capitalization for assets excluding Bitcoin and stablecoins has been in a drawdown since early October, with thin liquidity and cautious investor sentiment prevailing.
