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The price of XRP, the seventh largest cryptocurrency, fell sharply over the last three days, from July 31 highs of $0.659, a level last reached in late March. This downward trend was persistent, with the cryptocurrency struggling to find support and stabilize.
The latest sell-off might be partly attributed to broader market sentiment and profit-taking after XRP's astounding price rally in early July. The cryptocurrency market has faced increased volatility, with other digital assets experiencing similar downward pressure.
The markets extended a sell-off on Friday after a far weaker-than-expected jobs report for July raised concerns that the U.S. economy could enter a recession.
Tomiwabold OlajideAmid the ongoing sell-off, XRP faces a concerning technical indicator, a "death cross" that occurs when a short-term moving average crosses below a long-term moving average on its short-term charts.
XRP's hourly charts have recently displayed this pattern, with the 50-hour moving average crossing below the 200-hour moving average. A death cross is commonly interpreted as a bearish indication, indicating potential further declines.
XRP shows potential rebound
While the hourly death cross is a concerning indicator, it is important to note that it is not always a definitive predictor of future price movements. Market conditions can change rapidly, and XRP may find support at lower levels, leading to a potential recovery.
After three consecutive days of declines, the XRP price rebounded in today's trading session after hitting support at $0.542 near the daily SMA 200. XRP was seeing marginal losses at press time, down 0.96% in the last 24 hours to $0.567.
In the meantime, key support levels to watch include $0.52, which coincides with the daily SMA 50, and $0.403, which could act as floors in case of further declines. XRP rallied strongly in early July after confirming support at the $0.403 level. On the upside, a sustained break above the $0.659 level might kick-start a fresh bullish uptrend for XRP.
In the coming days, the market will be closely monitoring XRP's price action to see if it can regain its footing and reverse the recent losses.
Alex Dovbnya
Denys Serhiichuk