A death cross formation, a technical occurrence in which the 50-day moving average crosses below the 200-day moving average, has been formally confirmed by XRP. Generally speaking, this formation is interpreted as a bearish signal that suggests possible downward movement.
The death cross is a lagging indicator despite its intimidating name, and this must be kept in mind. It does not give a clear forecast for future price movements; rather, it reflects the recent bearish sentiment of the market. Though they are retroactive death crosses and golden crosses — the opposite formation — they frequently receive a lot of attention.
They summarize the current trends rather than predicting the future or making significant changes to the market. The cross can be explained by the recent bearish price movement of XRP, but this does not ensure that there will be more declines. The chart indicates that XRP is close to important levels of support and resistance. The initial level of support is currently at or near $0.50. Although maintaining above this level might help avoid a more significant retracement, XRP may test the $0.47 range if it is unable to hold this level.
If bearish pressure persists, this lower support could act as a critical point and stabilize the price of XRP. On the plus side, XRP might try to bounce back toward $0.56, a resistance level that it has recently had trouble breaking. Because of the comparatively low volume levels, there may be some price stagnation.
Returning higher trading volume, particularly with whale support, might give XRP the boost it needs to exit this bearish pattern. While XRP consolidates around the death cross, traders are likely to keep a close eye on these levels in the near future to see if the asset breaks its current trend or establishes new support.
Read the full article here
