Recent developments on the XRP chart have drawn analysts' attention. A 'death cross' pattern formed on the two-day timeframe raises concerns about a potential price drop for this popular cryptocurrency.
Formation of 'Death Cross' Pattern on XRP
The 'death cross' pattern was formed on the XRP chart when the 23-day moving average crossed below the 50-day moving average. This is considered a bearish signal, potentially predicting a significant price correction.
Current Situation on Major XRP Chart
Looking at the chart, the potential decline could be as high as 50%, with the 200-day moving average acting as possible support. Currently, the price curve is at $1.11, while XRP is trading slightly below the $2.30 level.
Analysis of Long-term Time Frames
On other major timeframes, the outlook for the third largest cryptocurrency isn't as severe. For instance, on the daily chart, the 200-day moving average for XRP stands at $1.66, which is 26.27% below the current price. However, the two-day timeframe remains unconventional and requires further study.
Despite bearish signals on some timeframes, the situation on significant long-term timeframes for XRP doesn't appear as critical. Nonetheless, traders and investors should closely monitor news and price changes in the market.
