XRP has experienced a significant reversal after briefly celebrating its first golden cross of 2026. In the last 48 hours, the digital currency has posted a sharp decline, with a death cross forming on its technical chart. This pattern has contributed to a 3.95% drop in XRP’s price within the past 24 hours, signaling a shift in market sentiment. As of the most recent data, XRP is trading at $1.97, down from a peak of $2.06.
Despite the negative price movement, XRP’s trading volume has seen a notable uptick. Trading volume surged by an impressive 167.34%, reaching a total of $3.68 billion. The increased volume indicates that market participants are active, but it has not been enough to stave off the bearish technical signal caused by the death cross.
A death cross occurs when a short-term moving average crosses below a longer-term moving average, signaling potential downward momentum for the asset. In XRP’s case, this shift places the coin within a tight trading range between $1.97 and $2.06. While XRP has managed to hold its position above $1.97, the outlook for a breakout beyond the $2.06 mark remains uncertain unless a bullish catalyst appears.
Liquidity and Investor Sentiment Plummets Amid Market Uncertainty
In addition to the technical indicators, XRP traders have experienced a liquidity imbalance that has shaken investor confidence. XRP recorded an 8,700% liquidation imbalance in the last 24 hours, with long-position traders losing nearly $2 billion as the price dropped below the $2 mark. Even short-position traders have not been spared, as XRP’s price movements continue to create uncertainty in the market.
This sudden downturn also nullifies the previous 12% spike in open interest that XRP registered over the weekend, leaving traders with significant losses. Despite the optimistic outlook that many investors held just days ago, the emergence of the death cross has cast doubt on XRP’s immediate future. Moreover, concerns regarding regulatory clarity and institutional adoption continue to weigh heavily on investor sentiment.
XRP’s struggles highlight the volatile nature of the cryptocurrency market, where sudden shifts in technical indicators can swiftly reverse price movements. As the coin continues to trade within a narrow range, its ability to overcome the current bearish trend will depend on factors beyond technical analysis, including potential regulatory updates and broader market trends.