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A bearish "death cross" signal has recently appeared on XRP's hourly charts, raising concerns about the cryptocurrency's short-term price trajectory.
A death cross occurs when a short-term moving average crosses below a long-term moving average. In the case of XRP, the 50-hour moving average has crossed below the 200-hour moving average. This pattern is typically interpreted as a bearish signal, suggesting potential further declines in price.
Despite the appearance of the "death cross," XRP has seen price growth in the last 24 hours, up 1.03% to $3.18 at the time of writing. However, this does not necessarily negate the potential for a further downside. The death cross indicates that the short-term momentum might be weakening compared to the long-term trend.
However, XRP technical indicators remain mixed at present, hence making it somewhat challenging to predict its next move.
The RSI indicator, for instance, on various time frames, remains in positive territory and above the midpoint, indicating potential bullish momentum. That said, sustained price movements above key resistance levels might be needed for confirmation.
Tomiwabold OlajideIn addition, moving average crossovers tend to be lagging indicators; the markets might have been oversold by the time the death cross signal appears and, hence, due for a rebound. Traders and investors should keep an eye on key technical levels and broader market trends to adjudge XRP's next price direction.
XRP price action
XRP reached a high of $3.365 on Jan. 20, but the bears stayed firm. The good news is that bulls have not given up much ground, with XRP on course to finish four out of five days in the green from this date, although the price has not risen over $3.285.
The possibility of range trading exists, with XRP consolidating between $2.91 and $3.40. If buyers hold the $2.91 support, the chances of a break above $3.40 increase. That might signal the start of an upward trend to $4 and, eventually, $4.84.
On the downside, the crucial support level to watch is $2.81. If this support fails, XRP might fall below the 50-day SMA at $2.51. Buyers are anticipated to fiercely defend the 50-day SMA, as a break below this level might sink XRP to $2.
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.
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