XRP posted a 14% gain in the last 24 hours to touch $1.40. This price increase brought XRP to close right above the 50-day and 200-day Exponential Moving Average (EMA) thresholds simultaneously. This double close marks the first time XRP has surpassed both technical boundaries since the formation of a death cross on the daily price chart.
Some media outlets have begun spreading narratives that this breakout signals XRP has broken its death cross trend. Analysts refute this assumption. The price movement indicator has yet to reverse direction, given that the physical 50-day EMA line remains locked below the 200-day EMA line.
Not Specific Demand, But a Coattail Effect
Market observers immediately issued warnings regarding the quality of this rally. They emphasized that XRP’s price movement did not bounce due to the push of fundamental demand specifically targeting the asset. This rise is merely a beta amplification effect of a major event in the main market: a massive Bitcoin short squeeze that recently wiped out billions of dollars in short positions.
The high level of dependency is reflected in the daily correlation data between XRP and Bitcoin this week. The correlation figure reached 0.85. This high level of correlation proves that the fate of XRP’s trend now entirely follows Bitcoin’s strength in maintaining its rally above the $72,000 mark.
A Repeating Pattern of Rejection
While crossing the two EMA lines may seem convincing to new buyers, its price history shows a pattern of sharp rejections. Since 2021, the XRP chart has recorded crossing both EMA lines three times. This recurring momentum occurred in September 2021, March 2024, and January 2025.
In all three instances, XRP always ran out of steam. The coin’s price consistently failed to maintain its buying power shortly after the external market drivers faded.
Additional warning flags have now been raised by analyst teams from CryptoQuant and Nansen. They observed that the fuel for the liquidation wave driving the Bitcoin short squeeze is starting to run dry. The subsiding of these forced liquidations leaves exchanges without the automatic upward driver from short sellers.
To prevent XRP’s current uptrend from reversing, the market strictly requires real spot orders. Relying on the remaining momentum of another asset’s short squeeze to sustain the $1.40 level will not be enough. A price pull without a solid foundation has the potential to turn the uptrend indicator into a trap for those who respond late.
As reported by crypto.news.
Also read: How to Read Candlesticks for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
