XRP Death Cross Forms on Hourly Chart, But Price Defies Odds

XRP, the fourth-largest cryptocurrency, surprised traders early Friday with a classic technical signal — a death cross appearing on its hourly chart — but the price defied the odds.

A death cross occurs when a short-term moving average, typically the daily SMA 50, crosses below a long-term one (the daily SMA 200), indicating potential bearish pressure. The death cross coincides with a sell-off spurred by fresh uncertainty on global markets, sending major cryptocurrencies tumbling and wiping out nearly $1 billion in leveraged bets.

After four days of rising since May 31, XRP saw profit-taking after reaching highs of $2.28 on June 3 and concluded the Wednesday and Thursday trading sessions in the red.

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The drop reached $2.06 in the Thursday session, and instead of continuing lower, XRP changed course, catching bears off guard and staging a rebound. XRP has marked seven out of the last eight hours in green.

Bulls defending key levels

Although XRP was trading slightly lower at press time, down 0.67% in the last 24 hours to $2.18, it has largely recouped daily losses (it reached intraday lows of $2.08 in the early Friday session). XRP has also recovered weekly losses, rising 0.02% over the last seven days.

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The bounce suggests that bullish traders are still actively defending key support levels. While the hourly death cross may suggest caution in the short term, the swift rebound shows bulls are still in the picture.

The rebound corresponds with a 73.9% increase in trade volumes in the last 24 hours, reaching $3.5 billion, according to CoinMarketCap data.

Market observers are now focused on XRPs ability to hold above its recovery levels and break higher. A decisive break above the hourly moving averages of 50 and 200 at $2.17 and $2.19 will be watched in the short term for XRP to advance its upward move.