- XRP faces a pivotal moment with its daily 50-day SMA poised to cross below the 200-day SMA, signaling a potential bearish death cross.
- Despite historical instances of unreliable moving average crossovers, XRP has experienced significant rebounds following previous death crosses.
- Possible scenarios include a brief decline with a subsequent upward movement if a bottom is reached, targeting resistance levels at $0.70 and $0.75.
XRP stands at a decisive juncture as its daily simple moving averages (SMA) hint at an imminent crossover. The daily 50-day SMA appears on track to dip below the 200-day SMA, showing the possibility of a bearish death cross.
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Following a recent market downturn leading XRP to reach a low of $0.496 on January 23, the cryptocurrency is now at a critical juncture. Despite a partial recovery to approximately $0.56, it continues to linger beneath key resistance levels represented by the 50-day SMA at $0.589 and the 200-day SMA at $0.587.
Source: TradingView
Despite historical instances where moving average crossovers proved unreliable as standalone indicators, there’s a noteworthy pattern for XRP. Previous death crosses have often marked major or intermediate bottoms, with the cryptocurrency experiencing rebounds shortly after. Notably, last September saw XRP bottom out at $0.483 shortly after a death cross formation, only to surge to highs of $0.75 in less than two months.
As XRP faces the possibility of a death cross, potential scenarios emerge. Should a bottom be established before a decline, XRP could target resistance levels at $0.70 and $0.75, potentially paving the way for a bullish reversal.
On the flip side, a death cross might trigger another wave of selling, with support levels at $0.483 and $0.476 acting as crucial demand zones. A break below $0.40 could confirm a bearish trend, exposing the price to the $0.42 level, untested since August 2023.
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