XRP, the fourth largest cryptocurrency, has created a "death cross" on its short-term charts, a bearish technical indication that has sparked market interest. This event coincides with a broader market sell-off, creating concerns about XRP's short-term price trend.
A death cross happens when a short-term moving average falls below a longer-term moving average. In XRP's instance, the 50-hour moving average has fallen below the 200-hour moving average on the four-hour chart. This pattern is frequently interpreted as a warning of a likely greater fall, suggesting that negative momentum might be gaining strength.
The cryptocurrency market is seeing selling pressure as the year 2024 concludes, with several cryptocurrencies trading in the red. This sell-off might have been contributed to by various factors, including macroeconomic uncertainty and trader profit-taking. In the last 24 hours, crypto positions worth $238 million have been liquidated. As a result, XRP has dipped, battling to hold the $2 mark.
XRP drops 6%
XRP led crypto losses on the second-to-last day of the year, with reduced expectations for continuous interest rate decreases by the Federal Reserve contributing to a drop in Bitcoin and cryptocurrency prices. U.S. equities also fell as investors trimmed positions amid uncertainty heading into the year's end.
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XRP has dipped nearly 6% in the last 24 hours; at the time of writing, it was down 5.96% to trade at $2.02.
XRP is trading in a symmetrical triangle pattern on its daily chart and may remain between its support and resistance lines for some time. The RSI below the midway might suggest that the bears have an advantage.
The next trending move is expected to begin whenever the XRP price breaks above or below the triangle. A breakout might propel XRP above $2.90, while a breach below the support line could indicate that XRP has reached its short-term peak. XRP's price may then drop to $1.62.
