XRP has entered a zone just ahead of a dead cross forming on the daily chart, blockchain media U.Today reported on Oct. 21 local time.

XRP was trading around $1.34, testing a key price level where the 50-day exponential moving average overlaps with the 200-day exponential moving average.

The 50-day EMA is falling and moving closer to the 200-day EMA. The two moving averages are formed around $1.37 to $1.38, and XRP is sitting just below that band. The level the market is watching is the daily close at that price. According to the outlet, a dead cross refers to the short-term moving average moving below the long-term moving average, but the direction is not yet confirmed because it is a lagging signal that shows price action that has already occurred.

This zone is an extension of the volatile moves XRP has shown in recent months. XRP surged from about $1.00 in August to around $1.70 and then moved sideways for weeks. From early October, as upward momentum weakened, it slid from the $1.50 range to around $1.26. That decline pulled down the 50-day line and narrowed the gap with the 200-day line.

Some signs of a short-term rebound are also emerging. The latest daily candle closed higher, and the close held around $1.34, above the recent low. Volume was not large during the correction, allowing an interpretation that selling pressure was not pushing aggressively. The relative strength index hovered around 40 and moved out of the low zone, and the outlet pointed to this as meaning "selling pressure is easing".

The conditions bulls must defend are relatively clear. XRP must rise to a level above both the 50-day and 200-day lines and hold there. In particular, if it regains $1.38 on a closing basis and maintains that level, the downward slope of the two moving averages could ease. The outlet said in that case "the cross may ultimately not be completed and the signal could be canceled". If there is a close that strongly clears $1.40, the chance of a move back toward $1.50 also increases.

Downside risks remain. If XRP is blocked by moving-average resistance and falls below $1.30, the likelihood of the dead cross being completed increases. In that case, the market could retest the recent low around $1.26. If $1.26 also breaks, the next support could be $1.20 and levels below it.

Ultimately, the near-term direction is likely to be decided by whether there is a daily close around $1.38. The current chart is close to a balance zone where both an upward rebound and a downside break are possible. The key focus in this stretch is whether XRP can reclaim the two moving averages and prevent the dead cross from forming, or whether it is blocked by resistance and confirms a bearish signal.