XRP has just formed a death cross against Bitcoin on the daily chart, a significant technical signal that has previously wiped out XRP/BTC rallies and now threatens to turn the $2.5 zone into a distant memory. An analysis of this pattern that could reshuffle the cards for XRP holders.
The XRP/BTC ratio has just crossed a major technical threshold: the short-term moving average has dropped below the long-term moving average, forming the infamous death cross. This bearish pattern, confirmed on the daily timeframe, indicates a momentum shift in favor of sellers. Historically, this signal has preceded collapses in the ratio, systematically erasing gains accumulated during bullish phases. Even as XRP rises in fiat value, it continues to underperform Bitcoin, making holding XRP less attractive than holding BTC. The $2.5 zone, which seemed realistic during the last bull cycle, now appears out of reach in the short term, and the XRP/BTC ratio shows structural degradation requiring a major reversal to change this dynamic.
Support levels have become critical: the first is around 0.000022 BTC, the historical floor during previous corrections, followed by 0.000018 BTC if selling pressure continues. These zones effectively mean that XRP would lose ground against Bitcoin, and market volatility amplifies these movements. Downside breakouts following a death cross are often accompanied by accelerated selling momentum, and cascading stop-losses can cause losses for unprepared holders while offering opportunities for short traders.
For a bullish scenario to materialize, XRP would need to reclaim the 200-period moving average with significant volume, which would require a major fundamental catalyst such as favorable regulatory resolution or massive institutional adoption. This configuration highlights the importance of monitoring key support levels and maintaining caution in portfolio management during this phase of relative weakness.
Given this unfavorable technical context, crypto investors have several options to adjust their exposure. The first is simply to acknowledge the underperformance and rebalance their portfolio toward Bitcoin, which demonstrates superior relative strength.
Diversification remains the cardinal principle of any crypto risk management strategy. Concentrating positions on a single asset, especially when technical signals are mounting against it, exposes one to avoidable drawdowns. Professional traders typically reduce their exposure to assets exhibiting a death cross, at least temporarily.
Another approach involves using derivatives to hedge. Short positions on XRP/BTC futures can neutralize the relative decline while maintaining token holdings. This hedging strategy presents liquidation risks, however, and requires active management.
For long-term investors convinced by XRP’s fundamentals, this period may represent a strategic accumulation opportunity, provided they accept a prolonged consolidation phase. The important thing is to trade with a defined plan rather than reacting emotionally to market movements.
Take full advantage of this volatility phase on Bitget, where diversification remains the cardinal principle of crypto risk management. Exclusive bonus ready to activate, maximizing opportunities in this context of relative decline.
On the same subject:
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
