The cryptocurrency market is grappling with volatility, and XRP is no exception. A recent technical development has drawn the attention of traders and analysts: the formation of a second death cross in 2024 for XRP.
A death cross is a technical indicator used in various financial markets. It signifies a potential bearish shift when a short-term moving average intersects below a long-term moving average. In the case of XRP, the 50-day moving average dipping below the 200-day moving average constitutes a death cross.
Read Also: XRP Forms Golden Cross For The Second Time This Year. Here’s the Significance
XRP’s Historical Response
Traditionally, death crosses are interpreted as bearish signals, suggesting a potential sell-off. However, XRP’s price history presents a curious anomaly. Interestingly, both death crosses in 2024 have been followed by periods of price recovery.
Following the first death cross in late January, XRP entered a consolidation phase, which ultimately led to a price increase. Roughly three months later, the price reached highs of over $0.7.
This divergence from the traditional death cross implication could be attributed to XRP being oversold before the technical formation emerged. Historical trends indicate that XRP remains bullish, and this death cross might be an inadvertent confirmation of a price resurgence.
The State of the Current Market
The current death cross for XRP coincides with a broader market downturn in the lead-up to the Federal Reserve’s upcoming meeting. Investors are keenly awaiting the Fed’s decision on interest rates, hoping for guidance on the future economic landscape.
Recent economic data indicating persistent inflation has tempered initial expectations of an interest rate cut as early as June. The revised timeline, potentially pushing any cuts to September, adds another layer of uncertainty to the market.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Experts Advise Caution as Bearish Signs Appear with Impending XRP Death Cross
XRP’s Support and Resistance Levels
Given the ongoing volatility and the death cross, pinpointing XRP’s future trajectory is challenging. However, key support and resistance levels can offer some insights. If the downward trend continues, the next major support level for XRP is anticipated to be around $0.467.
XRP is trading at $0.4995, down 3.21% in 24 hours, and this price point has acted as a critical floor for XRP’s price rebounds twice in April. Conversely, a price surge that surpasses both the 50-day and 200-day moving averages would be considered an initial sign of bullish momentum for XRP.
Follow us on Twitter, Facebook, Telegram, and Google News
