The XRP price has plunged by over 35% from its highest point this year, and an emerging death cross pattern suggests further downside despite some notable bullish catalysts.
Summary
- XRP price has formed a death cross pattern on the daily chart.
- This pattern points to more downside in the near term.
- Still, Ripple has numerous bullish catalysts that may offset the drop.
XRP price technical analysis
The daily chart shows that the Ripple (XRP) token was trading at $2.3700 today, Oct. 19, up by 33% from its lowest point this month. This price coincides with the ultimate support of the Murrey Math Lines tool.
Worse, the token has formed a death cross pattern, which could lead to more downside. This cross happens when the 50-day and 200-day Weighted Moving Averages cross each other when pointing downwards. It is one of the most bearish patterns in technical analysis.
The XRP price remains below the key resistance level at $2.70, which marks the lower side of the descending triangle pattern. This is another highly popular bearish signs.
Ripple price has invalidated the impulse phase of the Elliot Wave pattern. Therefore, there is a risk that the coin will continue falling as sellers target the key psychological point at $2.
Ripple has numerous bullish catalysts
The bearish XRP price forecast is based on its technicals, as the coin has numerous bullish fundamentals. One of the fundamentals is the rumor that Ripple Labs was considering launching a $1 billion fund to accumulate XRP.
Such a move would lead to more demand for the coin. Other companies like SBI Holdings, Trident Digital, Amber Power, VivoPower, and Webus have announced XRP treasuries.
XRP will also benefit with the approval of spot XRP ETFs by the Securities and Exchange Commission, which will likely happen after the government shutdown ends.
The existing XRP ETFs, including the recently launched REX-Osprey XRP ETF, have all seen substantial inflows. The XRPR ETF has accumulated over $88 million in inflows, while the XXRP fund has over $294 million in assets.
The XRP price will also benefit from Ripple Labs’ recent acquisitions. It recently bought GTreasury, a company that helps firms move money globally in a $1 billion. This marked its entry into the corporate treasury industry.
Ripple Labs acquired Rail in a $200 million deal as well as Hidden Road in a $1.25 billion deal. These acquisitions will help to create value for the XRP Ledger network. They will also help in the integration of the Ripple USD (RLUSD), its stablecoin.
