According to U.Today, XRP is showing signs of a potential moving average crossover in 2024, which could be a death cross or a golden cross. This development is being closely watched by the market as it could significantly impact XRP's price trajectory in the coming weeks and months. A death cross occurs when a cryptocurrency's short-term moving average drops below its long-term moving average, signaling a momentum shift and a possible decline. This is determined when the 50-day simple moving average (SMA) crosses beneath the 200-day SMA. Conversely, a golden cross, which is seen as a bullish sign, happens in reverse.
In XRP's case, the convergence of moving averages is causing concern among traders and analysts due to the cryptocurrency's price outlook. The XRP price is under selling pressure, increasing the chances of a potential death cross. At the time of writing, XRP had dropped 2.35% in the last 24 hours to $0.505, marking a 19.77% decline in April.
If a death cross occurs, it wouldn't be the first time such a bearish indicator has appeared for XRP. The cryptocurrency experienced its first death cross of the year in January, which was followed by a bottoming phase for XRP's price and a subsequent recovery. XRP later reached highs of $0.748 approximately three months after the January death cross. Given this history, traders and investors are contemplating the possibility of a similar scenario if a death cross emerges again.
Some analysts view moving average crossovers as lagging indicators, suggesting that the market may have been overbought or oversold before a golden cross or death cross appears. If this is the case for XRP, a rebound might be expected following the death cross, aligning with some analysts' views that the XRP price might currently be playing out a bottoming fractal.