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XRP's short-term moving average just crossed the 50-day EMA, which could be an important signal of short-term downward volatility. Such crossover has implications for the asset's trajectory in the near term, even though it is not on a par with the 50-day EMA cross.
This specific crossover typically indicates a change in momentum rather than a complete bearish trend reversal, as in the past. The 26/50 EMA crossover tends to highlight periods of consolidation or brief corrections prior to a possible recovery, in contrast to the traditional death cross, which usually signals the start of long downtrends.
When an asset sees significant price increases, overbought conditions arise and corrections are required before the trend resumes its upward trajectory. Regarding XRP, the price action remains close to important moving averages that serve as both support and resistance at about $2.10. The cross itself does not always portend a protracted bearish phase, even though it does point to a slowdown in bullish momentum.
Alex DovbnyaRather, the asset might go through a period of sideways trading prior to its next big move. Since the 50-day EMA is still functioning as a dynamic support level, XRP may be able to rise above the $2.35 resistance zone if it bounces from this region. The price may make another upward attempt if bullish sentiment returns and stays above this level. A decrease in trading volume after the most recent price retracement indicates less selling pressure.
Furthermore, a slow recovery may be supported by the Relative Strength Index (RSI), which is currently at 42, a neutral-to-slightly-oversold level. XRP may trigger another rally toward the $2.60-$2.70 range if it regains the 50-day EMA. However, if $2.09 is not held, there may be more consolidation around $2.00 before a more distinct trend is seen. Although it indicates cooling momentum, the recent 26/50 EMA cross does not prove a clear bearish trend.
XRP's consolidation might be the next on the menu for the majority of investors. More definite indications might come sooner, but for now, XRP might enter a "crab market," with the price moving sideways for some time until the majority of investors finally decide which way the asset should go.
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