XRP seems to be at a pivotal crossroads, causing analysts to cross their fingers. For the first time in over a year, the charts show that XRP is close to forming a death cross.
Two notable figures in the crypto sphere, Lord Crypto (@lord_crypto4) and CryptoBusy (@CryptoBusy), have recently voiced concerns about XRP’s precarious position.
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The BMA Band and Symmetrical Triangle
Lord Crypto highlighted the significant drop XRP has experienced. The digital asset has dropped more than 45% since its post-lawsuit price surge. It has fallen significantly from its high of over $0.9 and is trading at $0.5009.
Lord Crypto also showed the BMA Band in the chart, emphasizing that the 20-week SMA shown in red has crossed above the 21-week SMA shown in green. This crossover has caused these moving averages to drift apart, indicating the potential for further downward pressure. The only way to reverse this is if bullish news emerges.
The chart also shows descending resistance levels since the middle of August. It also shows rising support levels, which prevents substantial price declines. However, the low resistance levels are preventing XRP’s attempts to recover. Lord Crypto identifies $0.42 as a crucial support level and predicts that XRP will drop to this level without bullish news.
From its SEC news pump, $XRP has lost almost 50% in price.
⚡️The BMS Band has flipped and is widening, signifying a bearish future.
⚡️Unless another bullish news is released, we'll see another slight dump towards the main support area of $0.42.Let's see if… pic.twitter.com/zvC57PKKmA
— Lord Crypto (@lord_crypto4) September 25, 2023
CryptoBusy drew attention in a different direction, showing the emergence of a symmetrical triangle pattern on XRP’s daily chart. This pattern shows converging trend lines, and it began forming in mid-August.
CryptoBusy points out that triangles like this often signify market indecision because buyers and sellers don’t have control of the market. CryptoBusy advises caution because it is hard to determine what direction this uncertainty could push XRP.
CryptoBusy states, “I wouldn’t enter unless you’re into scalping or intraday trading.” Short-term strategies are the best in times of uncertainty. Traders can capitalize on the small fluctuations in asset prices.
Read Also: Google Bard Predicts When XRP Price Will Hit $5, $20, and $50
XRP’s Death Cross
The XRP daily chart hints at a concerning “death cross” pattern, where the 50-day EMA dips below the 200-day EMA. A death cross occurs when a short-term moving average crosses a long-term moving average.
In this case, we have the 50-day EMA and the 200-day EMA. Last seen in December 2021, the death cross triggered a sharp 46% drop in XRP’s value within a month.
With the 50-day EMA at $0.5289 nearing a potential crossover below the 200-day EMA at $0.5195, XRP faces renewed risk of a death cross, intensifying bearish sentiment. Currently trading at $0.5009, below both EMAs, XRP’s outlook appears bearish.
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