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A bearish “death cross” signal recently appeared on the hourly charts of XRP, raising concerns about the cryptocurrency’s short-term price trajectory.
A death cross occurs when the short-term moving average crosses below the long-term moving average. In the case of XRP, the 50-hour moving average crossed below the 200-hour moving average. This pattern is usually interpreted as a bearish signal, indicating possible further declines in the price.
Despite the appearance of a “death cross,” XRP has seen price growth over the past 24 hours, rising 1.03% to $3.18 at the time of writing. However, this does not necessarily negate the possibility of a further decline. A death cross indicates that short-term momentum may be weakening compared to the long-term trend.
However, technical indicators for XRP are still mixed at the moment, which makes predicting its next move somewhat difficult.
For example, the RSI, on different time frames, remains in positive territory and above the midpoint, indicating potential upward momentum. However, sustained price movements above key resistance levels may be needed for confirmation.
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Additionally, moving average crossovers tend to be lagging indicators; Markets may be oversold by the time the death signal appears, and thus, a bounce is due. Traders and investors should monitor key technical levels and broader market trends to judge the next direction for XRP price.
XRP price movement
XRP reached a high of $3,365 on January 20, but the bears remained firm. The good news is that the bulls haven’t given up much ground, as XRP is on track to finish four out of five days in the green as of this date, although the price has yet to rise above $3,285.
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There is potential for range trading, with XRP consolidating between $2.91 and $3.40. If buyers hold the support at $2.91, the chances of a break above $3.40 will increase. This could signal the start of an uptrend to $4, and eventually to $4.84.
On the downside, the crucial support level to watch is $2.81. If this support fails, XRP could fall below the 50-day simple moving average at $2.51. Buyers are expected to strongly defend the 50-day simple moving average, as a break below this level could send XRP falling to $2.
