XRP Death Cross: End of the Bull Run or a Buying Opportunity?

After several weeks of struggling to surpass the 54-cent mark, the XRP price now shows signs of a potential downturn, offering a window for new market participants to join in before a possible breakout. But is this a buying opportunity, or a sign of things to come?

According to the latest market data, XRP was trading at around $0.497 during Wednesday’s early London session. With a 4.4 percent drop in the past week, XRP’s short-term prospects look less optimistic.

Market Trends You Should Know

Adding to the uncertainty, the daily 50-day and 200-day moving averages are on the verge of forming what’s known as a “death cross.” This development could further reinforce the ongoing weekly death cross trend we’ve seen throughout the year. However, it’s worth noting that XRP’s situation might not be as dire as some other cryptocurrencies, thanks to growing interest from institutional investors.

Crypto analysts have identified a critical support level around 43 cents as the next point of interest. It’s anticipated that XRP’s price will muster the strength to bounce back from this level.

Also Read: XRP Price Analysis: Retest Prolongs For XRP, Next Stop $0.60?

Linked with Bitcoin’s Dominance

The trajectory of XRP’s price is undeniably linked with Bitcoin’s dominance, particularly if Bitcoin falls below its year-to-date rising trend. Furthermore, a further decline in Bitcoin’s dominance could trigger a much-anticipated resurgence of altcoins in the Q4 of 2023.

When Will We Receive Regulatory Clarity?

Currently, Bitcoin dominance stands at approximately 50 cents, while the industry eagerly awaits decisions on spot ETFs from the United States Securities and Exchange Commission (SEC) expected next month. These decisions will impact the markets as well. This presents both challenges and opportunities for investors.

Read More: The US Lawmakers Urge SEC to Speed Up Bitcoin ETF Approval Process