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XRP, the fourth largest cryptocurrency by market capitalization, recently showed a notable technical signal — a death cross on its hourly chart — which many traders deem a sign of bearish momentum. This pattern, which occurs when a short-term moving average dips below a longer-term moving average, has emerged in the present market uncertainty.
In the case of XRP, the hourly moving average of 50 has crossed below the hourly moving average of 200, indicating a "death cross."
The hourly death cross suggests that XRP's short-term performance is under strain, reflecting broader market volatility. Although technical signals like these are not definitive predictors of future price movements, they serve as cautionary signals for investors to reassess their positions.
Gamza KhanzadaevAlthough the formation of the death cross may signal potential bearish trends, it is important to note that short-term technical indicators can sometimes be fleeting or produce false signals in highly volatile markets. Various technical and fundamental factors can be adjudged to decide XRP's next market move.
XRP price action
XRP was trading in the red in early Sunday's session, extending its drop from highs of $2.62 on March 7. XRP’s price drop coincided with the Crypto Summit on Friday as hopes for its inclusion in a strategic crypto reserve faded.
Tomiwabold OlajideAt the time of writing, XRP was down 1.3% in the last 24 hours to $2.31. According to crypto analyst Ali, XRP is consolidating within a symmetrical triangle. A breakout could spark a 23% price move.
If the breakout resolves to the upside and buyers drive the price above $3, XRP may gain momentum and hit $3.40. Sellers will try to defend the $3.40 level with all their might because, if they fail in their endeavor, XRP could skyrocket toward $5.
The RSI near the midpoint suggests rangebound action in the short term. If the decline continues, XRP could fall to $2.20. Buyers are expected to fiercely defend the $2.20 to $2.00 zone. If this fails, XRP may retest support at $1.79 or the daily SMA 200 at $1.60.
Dan Burgin
Vladislav Sopov