XRP, the fourth-largest cryptocurrency, has encountered a negative signal on the chart, raising concerns among traders. The appearance of a 'death cross' on the hourly chart may indicate a potential continuation of the downward trend.
What is a 'Death Cross'?
The term 'death cross' refers to a situation where the short-term moving average (typically the 50-SMA) crosses below a longer-term moving average (200-SMA). This is a technical signal often associated with bearish market sentiment.
Current Conditions of XRP Market
According to CoinMarketCap data, XRP's 24-hour trading volume is down by 41.52% to $2.55 billion. The market experienced a sell-off, resulting in over $1.16 billion in liquidations. This decreased trading activity has traders sitting on the sidelines awaiting the next significant move.
What’s Next for XRP?
The emergence of this bearish pattern follows four consecutive days of decline from June 10 to 13. However, at the time of writing, XRP shows a slight rebound, up 1.79% over the last 24 hours, currently trading at $2.16. Should buying momentum continue to build, the bearish setup might soon be invalidated. If the price turns up sharply from current levels and breaks above the hourly SMAs at $2.16 and $2.22, it may target the levels of $2.33 and $2.65.
The 'death cross' signal can be alarming for XRP traders, yet current dynamics and the potential rise in buying interest offer prospects for price recovery.
