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The price of popular cryptocurrency XRP saw an unusual spike today, as its quotes jumped from $0.5527 to $0.578 in just over an hour, up 4.71% on the day. As part of this price action, XRP hit its highest level at this point since early October.
What caused such a spike on the price chart remains a mystery, as there was no news about the popular cryptocurrency during this time frame.
Yuri MolchanIt is also interesting to note that this spike occurred on the eve of a so-called death cross. In fact, on the daily price chart of XRP, a picture is currently forming in which the 50-day moving average is about to cross the 200-day moving average.
This pattern is ominously called a death cross and is usually a precursor to a price decline in an asset. The last time this happened to XRP, the price of the token fell more than 20% over the next 70 days, hitting an ultimate low of $0.4.
What's next for XRP?
The unexpected spike and impending death cross create an intriguing setup for XRP. On the one hand, a death cross has signaled a bearish shift, so today's rally may be a bit cautious.
Arman ShirinyanOn the other hand, the current rally could indicate increased interest and volume, while the approaching bearish technical pattern could signal a shift in sentiment.
One thing is for sure: XRP is back in the spotlight, and a roller coaster ride is almost guaranteed for the popular cryptocurrency and its enthusiasts.
Vladislav Sopov
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya