The price of XRP is stabilizing near the critical $2.06 level, following a sharp 24.5% monthly decline. This move completed a bearish “head and shoulders” pattern. However, XRP price technical analysis suggests the correction might be ending, as buyers quietly return to the market.
The recent correction brought the asset to its projected target of $2.09, before finding solid support at $2.06. Despite this stabilization, derivatives data continues to show strong bearish pressure. According to reports from Coinglass, short positions outweigh long positions by a ratio of nearly eight to one in the futures market. Specifically, there is $262 million in accumulated short leverage compared to only $33 million in long positions betting on a rise.
The relevant aspect of the current situation is the clear discrepancy between the derivatives market and the spot market. Data from the analytics firm Glassnode shows a sharp increase in XRP withdrawals from exchange platforms. Net outflows increased by almost 50% between October 30 and November 4, reaching 1.25 billion XRP. Historically, withdrawals from exchanges suggest accumulation and not selling intent, indicating that large holders may be taking advantage of the low prices.
Can Buyer Accumulation Counteract the Impending “Death Cross”?
Despite the spot accumulation, the daily chart presents a significant technical threat that investors are watching closely. The 50-day Exponential Moving Average (EMA) is dangerously approaching the 200-day EMA. If the short-term average crosses below the long-term one, it will form a “death cross.” This is a bearish indicator that often warns of extended weakness for the cryptocurrency. Analysts at B2BinPay, meanwhile, describe the current structure as a consolidation within a broader uptrend, rather than a full market reversal.
XRP is currently at a technical crossroads. On one hand, XRP price technical analysis shows completed bearish patterns and a latent risk of a “death cross.” On the other hand, strong spot accumulation provides a solid base at the $2.06 support. If this support level breaks, the price could retest the $1.91 zone. However, a decisive break above the $2.45 and $2.55 resistance levels would invalidate the bearish sentiment, opening the path toward bullish targets of $2.77 and $3.10.
