Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Technical analysts know that a death cross involving the 50-day and 200-day exponential moving averages (EMAs) is a bearish signal, and that is what XRP is facing. This predicament developed after XRP was unable to profit from a bullish breakout from the symmetrical triangle, a move that would have raised the price of the cryptocurrency.
Rather, the asset has undergone a substantial breakdown, and the EMAs are currently indicating a downward trend, which is paving the way for additional downside pressure. When the 200-day moving average crosses below the 50-day moving average, it forms a death cross, which is frequently interpreted as a sign of protracted bear markets.
Gamza KhanzadaevGiven the downward trends of both moving averages, XRP may be about to experience a longer-lasting decline. Recent trading sessions have seen a sharp increase in the selling volume, indicating that there is currently little-to-no buying support on the market.
Key price points
At the moment XRP is trading close to $0.54, which has emerged as a crucial resistance level. This price is in very close alignment with the downward-trending 100-day EMA. If XRP is unable to breach this barrier, it can be a sign of additional market weakness and a move lower for the asset.
One important area of support is at $0.50. A breach of this psychological barrier would intensify the bearish trend and might put more pressure on sellers. If XRP is unable to hold onto $0.50, the market's negative sentiment could cause it to rapidly decline toward even lower levels.
The final line of defense is $0.46. At a lower level of historical support, or $0.46, is the location of the next significant support. A decline to this level would indicate that XRP has started a more serious correction, and as traders expect a long-term bearish trend, the death cross might lead to further downside pressure.
Yuri Molchan
Godfrey Benjamin
Dan Burgin
Vladislav Sopov
U.Today Editorial Team