XRP, the fifth largest cryptocurrency by market capitalization, is about to print a major signal. In a day or two, the moving averages will be making a crossover, which might set the tone for XRP's next move.
XRP might face its first death cross in 2023 after printing a golden cross earlier in the year. The last time XRP saw a bearish death cross formation on its chart was in December 2022, after which the price hit a bottom at $0.29.
A death cross occurs when the moving average (MA) of 50 falls beneath the daily moving average (MA) of 200. Hence, traders might pay attention to the nature of the crossing of the moving averages.
The earlier scenario predicts a death cross, while a golden cross might emerge if the moving average (MA) of 200 drops below the moving average (MA) of 50.
Moving average crossovers, either death or golden crosses, on the other hand, should not be considered the Holy Grail of the market. Because they use backward-looking data, some market experts regard these as lagging indicators.
What to watch
As stated earlier, the nature of the crossover of the moving averages might dictate the next price direction. A death cross, in theory, might imply further selloff. In the case of XRP, this frequently refers to a bottoming signal, which may indicate that a bottom is on the way for XRP.
In the case of further declines, XRP may target the $0.459 support level before reaching the $0.43 level. The recent price action has produced a symmetrical triangular pattern, showing hesitation between the bulls and bears.
If, on the other hand, the price rises and breaks above the moving averages, it indicates that bulls are attempting to grab control. The pair may then rise to the $0.557 barrier and then to $0.665.