According to U.Today, XRP, a popular cryptocurrency, has experienced its second 'death cross' of 2024, a key technical event that has caught the attention of traders and analysts. A death cross is a bearish indicator that occurs when a short-term moving average, such as the 50-day moving average, crosses below a long-term moving average, like the 200-day moving average. This is the second time such an event has occurred for XRP in 2024, the first being in late January.
Despite the typically negative implications of a death cross, XRP's history suggests a different outcome. Following the first death cross of 2024, XRP entered a bottoming phase, followed by a recovery that saw its price reach highs of $0.748 approximately three months later. This pattern suggests that the price may have been oversold by the time the death cross emerged, offering a glimmer of hope to investors who wonder if a similar pattern might play out after this second death cross.
At the time of writing, the XRP price was down 2.49% in the last 24 hours to $0.494 as the broader crypto market faced selling pressure ahead of the Federal Reserve’s meeting. The meeting, scheduled to begin Tuesday and end Wednesday, is expected to result in a new interest rate decision and press conference. Investors are anxiously awaiting guidance on the outlook for interest rates, as concerns about when rates will be cut and how many cuts may occur this year have been top of mind.
The current market outlook adds to the uncertainty about the implications of a death cross formation for XRP. If declines persist, XRP's next major support is envisaged at $0.467, which has formed a base for the XRP price rebound twice in April. Conversely, a break above the daily moving averages of 50 and 200 might be the first sign of strength for the XRP price.
