According to U.Today, XRP, the seventh largest cryptocurrency by market capitalization, has recently formed a 'death cross' on its four-hour chart. This technical pattern, which occurs when a short-term moving average crosses below a long-term moving average, is generally regarded as a bearish signal. Specifically, the 50-period moving average has crossed below the 200-period moving average, indicating that short-term price action is weakening relative to the longer-term trend.
The emergence of a death cross on XRP's charts has raised concerns about the cryptocurrency's short-term price trajectory. However, it is important to note that while the death cross is a bearish indicator, it does not guarantee further declines. Market conditions, investor sentiment, and external factors can all influence price action, potentially counteracting the death cross signal.
At the time of writing, XRP was down 0.23% in the last 24 hours to $0.576 but up 30% weekly. The cryptocurrency currently presents a mixed outlook, with bulls and bears battling for supremacy. XRP's price dipped after reaching highs of $0.643 on August 8. The declines reached lows of $0.546 in yesterday's trading session, coinciding with a broader crypto market sell-off.
XRP is currently attempting a rebound, with prices reaching highs of $0.5799 in today's trading session. On the upside, any sustained recovery might face resistance at $0.643 and $0.659, which may act as a ceiling for price action. The immediate support levels to watch are the daily moving average 200 at $0.544 and the daily SMA 50 at $0.533. If the XRP price falls below this level, it could trigger further selling pressure, potentially pushing XRP down to $0.432.
