XRP Price Teeters at $2 Support Amid Death Cross Fears

Technical analysts are raising concerns about an impending death cross, a bearish chart pattern in which the 50-day moving average falls below the 200-day moving average, as XRP, Ripple's flagship token, teeters dangerously close to the $2 support line.

The token, which had briefly crossed $2.30 earlier this month amid optimism over an XRP ETF, has since retraced over 12% in just five days. This decline has alarmed traders, who believe that XRP's current trajectory resembles similar breakdowns observed in early 2022.

“The $2 zone is more than just a round number,” said Leah Morgan, senior analyst at TradingStack. “It’s a psychological threshold that separates bullish accumulation from panic-driven selling.”

A confluence of macroeconomic uncertainty and lack of updates from Ripple’s legal team has added to the pressure. Though the SEC case is widely expected to be resolved in Ripple’s favour, the absence of an immediate settlement or ETF filing has cooled enthusiasm.

Social sentiment, however, remains mixed. Data from LunarCrush shows a slight uptick in XRP mentions across crypto Twitter, although bullish sentiment is falling. Retail holders remain divided, with some doubling down at current levels and others exiting positions in fear of deeper losses.

Ripple Labs has not commented on the price action, focusing instead on new institutional partnerships in Asia and Latin America, but markets are clearly searching for reassurance.

A breakdown below $2 could see XRP plunge toward $1.72 or lower, especially if broader market volatility picks up. However, if bulls maintain their position and an ETF development emerges, a relief bounce could swiftly return XRP above $2.20.

For now, it's a waiting game, with headlines and charts potentially dictating the next move.