Sat, 10/14/2023 - 18:16
XRP appears oversold and may stage short-term rally
XRP, the fifth largest cryptocurrency by market capitalization, seems to be portraying oversold signals.
This is as the four-hour chart displays the similitude of a "death cross" pattern, which happens when the moving average MA 50 falls below the moving average MA 200. This is regarded as a bearish indication, but instances for XRP prove otherwise. The majority of XRP's so-called "death crosses" have culminated in the crypto asset's bottoming phase. Moving average crossovers are referred to by some as "lagging indicators," as most of the time the crypto asset would have been oversold or overbought before it happened.
After six straight days of trading in the red, XRP appears oversold and may stage a short-term rally. However, a look at the four-hour chart depicts something interesting: XRP is consolidating in a narrow range.
While the short term remains uncertain, traders may need to pay close attention because most consolidations are typically followed by major breakouts. However, predicting the direction of the breakout with certainty may be challenging. Given that the bulls have not allowed XRP to fall below $0.47 in recent weeks, the possibility of an upside breakout grows.
Author: Tomiwabold Olajide
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