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A potential "death cross" formation on XRP's hourly chart failed to confirm, providing a glimmer of hope for XRP holders.
A death cross indicates a bearish move when a shorter-term moving average, usually the 50-period, crosses below a longer-term moving average, such as the 200-period. In the case of XRP, this pattern appeared to be taking shape on the hourly chart, sparking caution among traders.
However, the bearish momentum suddenly dissipated. Rather than falling further, XRP settled into a very tight trading range around its hourly SMA 50 and 200 at $2.20 and $2.22, respectively. This kind of price action indicates consolidation, often viewed as a period of indecision preceding a potential breakout in either direction.
While the faint death cross still lingers on the hourly chart, the failure to break lower is a mild positive for bulls hoping for a rebound. Traders are now looking for catalysts that could propel XRP over its current range.
What comes next?
XRP is now consolidating in a very tight range on its hourly chart, indicating that traders are waiting for stronger market cues before taking action. This low-volatility condition may presage a larger move, though it is unknown whether the breakout will favor bulls or bears.
Turning to the daily chart, XRP fell for two days in a row, hitting a low of $2.124 on April 30 before recovering. The rise brought XRP once again above the closely watched daily SMA 50 at $2.191.
At press time, XRP was slightly up 0.06% in the last 24 hours to $2.23; a positive sign is that the XRP price remained above the daily SMA 50. In the coming days, XRP price action around the daily SMA 50 will be keenly monitored.
If the XRP price decisively holds above the daily SMA 50, it may approach $3 next. On the other hand, if selling pressure returns, XRP may retest support between $2.10 and $2.00.
Vladislav Sopov
Dan Burgin