XRP Faces Death Cross as $3 Level Becomes Key Test for Bulls Ahead of ETF Launch

XRP, holding the position as the third-largest cryptocurrency by market cap, is currently facing selling pressure after a death cross appeared on its hourly chart. This has heightened worries about short-term price swings just before the anticipated debut of the first U.S. spot

ETF, named the REX-Osprey XRP ETF (XRPR). The death cross, which happens when the 50-period moving average falls below the 200-period moving average, is often viewed as a bearish signal. This pattern was recently seen on XRP’s four-hour timeframe, prompting traders and investors to be more cautious about near-future price action.

According to the most recent figures, XRP is currently valued at $3.03, showing a 1.11% uptick over the past 24 hours. Even with this modest rebound, the token has struggled to revisit its recent peak of $3.187 from September 13. After dropping to $2.95 on September 15, buyers have attempted to reclaim the $3 mark, but this price point remains a fierce battleground as it aligns with the daily SMA 50. Market watchers are focused on whether this level will serve as a support or if it will be breached, which could open the door to further losses down to $2.80 or lower.

Key support and resistance areas play a vital role in determining XRP’s short-term direction. Initial support sits at $2.96 and $2.80, with a major support mark at $2.40 if stabilization fails. On the resistance side, barriers are developing at $3.60, $4.20, and $5.00. Some analysts suggest a potential target of $10 by 2026, provided the ETF spurs demand and institutional interest rises. However, they warn that if $2.80 does not hold, a dip to lower levels could postpone any bullish outcomes.

The forthcoming launch of the REX-Osprey XRP ETF marks a milestone, as it is set to broaden access for both institutional and retail investors across the U.S. This fund will dedicate 80% of its portfolio to XRP, with the remaining 20% invested in cash and equivalents such as U.S. Treasuries and government securities. It is the first ETF of its kind for XRP, following the successful rollout of the REX-Osprey Dogecoin ETF (DOJE) in early September 2025, signifying a major step forward for crypto investment vehicles.

Market outlook is currently mixed. While bulls are encouraged by the recent bounce and the upcoming ETF introduction, uncertainty from wider crypto market fluctuations and regulatory issues remains. Data from Coinglass shows that $12.67 million in positions were liquidated in the past day, with $10.8 million coming from long trades, indicating that optimism persists among traders despite the recent dip. At the same time, XRP’s price has largely stayed near $3, with its market value at $179.79 billion and 24-hour trading volume at $5.44 billion, demonstrating ongoing interest.

As participants await the ETF’s official rollout, the presence of the death cross and the contest over the $3 threshold underscore a delicate standoff between bearish and bullish sentiment. Investors are encouraged to keep an eye on major technical price levels and broader economic developments, especially as the Federal Reserve’s rate decision on September 17 may sway market dynamics.